A. As part of the operating agreement, the board of supervisors of the sponsoring county may agree to lease health system assets to the nonprofit corporation for purposes prescribed in section 11-1402.

Terms Used In Arizona Laws 11-1432

  • agreement: means an agreement between the sponsoring county and a nonprofit corporation under this chapter for the corporation to assume the health care responsibilities previously performed by the county, including all arrangements and understandings, including a lease agreement, between the county and corporation. See Arizona Laws 11-1401
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • board: means the board of directors of a nonprofit corporation that operates a community health system pursuant to this chapter. See Arizona Laws 11-1401
  • Board of supervisors: means the board of supervisors of the sponsoring county. See Arizona Laws 11-1401
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • corporation: means a nonprofit corporation that is organized under title 10 and that is qualified or will qualify under section 501(c)(3) of the internal revenue code. See Arizona Laws 11-1401
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Health system: means any health care institution and all related real and personal property including, without limitation, all clinics, rehabilitation centers, therapy facilities, outpatient clinics, nursing homes, blood banks, ambulance facilities, extended care facilities, dispensaries, pharmacies, parking facilities, laundry facilities, dormitories, offices and administration buildings, cafeterias and food service facilities, research, laboratory and diagnostic facilities, libraries, information systems and data bases, ambulances, stretcher vans and other medical transportation equipment, education facilities, school-based clinics, equipment, tools, machinery, accounts receivable and other intangible assets, health maintenance organizations, health care services organizations and health insurance plans, including all related reserves, deposits, prepayments, risk pools and similar assets of these organizations and plans, graduate medical and other health care professional educational programs, public health education programs and business operations, in each case maintained, owned or operated for the payment and delivery of medical services, nursing services, home health services, home delivery services, emergency medical services, behavioral health services, long-term care services, health-related services and health screening services, adult day health services, adult foster care services, hospice services, personal care services, respite care services, supervisory care services and medical equipment services. See Arizona Laws 11-1401
  • Health system assets: means all real, personal, tangible and intangible property and rights in property that are used by or accruing to the county health system. See Arizona Laws 11-1401
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lease agreement: means any agreement providing for the lease and conveyance, if any, of health system assets to a nonprofit corporation under this chapter. See Arizona Laws 11-1401
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Sponsoring county: means a county that enters into an operating agreement under this chapter. See Arizona Laws 11-1401

B. If the board of supervisors leases the health system assets to the corporation, the board of supervisors may convey, sell or otherwise transfer title to any of those health system assets, including personal property and improvements to real property, except that:

1. The sponsoring county shall retain title to any fee interest in the land underlying any conveyed improvements.

2. The lease agreement, including any amendments, renewals or extensions of the lease agreement, remains binding and effective according to its terms regardless of ownership of any health system assets.

C. If, under the lease agreement, any of the health system assets or operations are conveyed to the nonprofit corporation, they are presumed to have been conveyed for their current fair market value.

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