Utah Code 31A-8-105. General powers of organizations

Organizations may:

(1)

buy, sell, lease, encumber, construct, renovate, operate, or maintain hospitals, health care clinics, other health care facilities, and other real and personal property incidental to and reasonably necessary for the transaction of the business and for the accomplishment of the purposes of the organization;

Terms Used In Utah Code 31A-8-105

Contract: A legal written agreement that becomes binding when signed.
Health care: means any of the following intended for use in the diagnosis, treatment, mitigation, or prevention of a human ailment or impairment:

(a)	a professional service;

(b)	a personal service;

(c)	a facility;

(d)	equipment;

(e)

a device;

(f)	supplies; or

(g)

medicine. See Utah Code 31A-1-301

Indemnity: means the payment of an amount to offset all or part of an insured loss. See Utah Code 31A-1-301

Insurance: includes :

(i)	a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;

(ii)	a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and

(iii)

a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301

Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:

(i)	a policyholder;

(ii)	a subscriber;

(iii)

a member; and

(iv)

a beneficiary. See Utah Code 31A-1-301

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}

Sell: means to exchange a contract of insurance:

(a)	by any means;

(b)	for money or its equivalent; and

(c)	on behalf of an insurance company. See Utah Code 31A-1-301 State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(2)	furnish health care through providers which are under contract with the organization;

(3)	contract with insurance companies licensed in this state or with health service corporations authorized to do business in this state for insurance, indemnity, or reimbursement for the cost of health care furnished by the organization;

(4)	offer to its enrollees, in addition to health care, insured indemnity benefits, but only for emergency care, out-of-area coverage, unusual or infrequently used health services as defined in Section 31A-8-101, and adoption benefits as provided in Section 31A-22-610.1;

(5)	receive from governmental or private agencies payments covering all or part of the cost of the health care furnished by the organization;

(6)	lend money to a medical group under contract with it or with a corporation under its control to acquire or construct health care facilities or for other uses to further its program of providing health care services to its enrollees;

(7)	be owned jointly by health care professionals and persons not professionally licensed without violating Utah law; and

(8)	do all other things necessary for the accomplishment of the purposes of the organization.

Amended by Chapter 329, 1998 General Session

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