(a)  The board of directors of a hospital district or any affiliated nonprofit corporation may do any of the following when it determines that the action is necessary for the provision of adequate health services to communities served by the district:

(1)  Enter into contracts with health provider groups, community service groups, independent physicians and surgeons, and independent podiatrists, for the provision of health services.

Terms Used In California Health and Safety Code 32126.5

  • 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.

(2)  Provide assistance or make grants to nonprofit provider groups and clinics already functioning in the community.

(3)  Finance experiments with new methods of providing adequate health care.

(b)  Nothing in this section shall authorize activities which corporations and other artificial legal entities are prohibited from conducting by § 2400 of the Business and Professions Code.

(Amended by Stats. 1992, Ch. 981, Sec. 4. Effective January 1, 1993.)

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