{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/23.1-2212.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/23.1-2212.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/23.1-2212.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/23.1-2212.html"}],"law_id":56205,"edition_id":1,"section_id":56205,"structure_id":14644,"section_number":"23.1-2212","catch_line":"Operations of Medical Center","history":"1994, c. 621, \u00a7 23-77.3; 2003, c. 701; 2014, c. 320; 2016, c. 588.","full_text":"A\n\nThe ability of the University to provide medical and health sciences education and related research is dependent upon the maintenance of high-quality teaching hospitals and related health care and health maintenance facilities, collectively referred to in this article as the Medical Center, and the maintenance of a Medical Center serving such purposes requires specialized management and operation that permit the Medical Center to remain economically viable and participate in cooperative arrangements reflective of changes in health care delivery.B\n\nNotwithstanding the provisions of § 32.1-124 exempting hospitals and nursing homes owned or operated by an agency of the Commonwealth from state licensure, the Medical Center shall be, for so long as the Medical Center maintains its accreditation by a national accrediting organization granted authority by the Centers for Medicare and Medicaid Services to ensure compliance with Medicare conditions of participation pursuant to § 1865 of Title XVIII of the Social Security Act (42 U.S.C. § 1395bb), deemed to be licensed as a hospital for purposes of other law relating to the operation of hospitals licensed by the Board of Health. The Medical Center shall not, however, be deemed to be a licensed hospital to the extent that any law relating to licensure of hospitals specifically excludes the Commonwealth or its agencies. As an agency of the Commonwealth, the Medical Center shall remain (i) exempt from licensure by the Board of Health pursuant to § 32.1-124 and (ii) subject to the Virginia Tort Claims Act (§ 8.01-195.1 et seq.). This subsection shall not be construed as a waiver of the Commonwealth’s sovereign immunity.C\n\nThe University may create, own in whole or in part, or otherwise control corporations, partnerships, insurers, or other entities whose activities promote the operations of the Medical Center and its mission; cooperate or enter into joint ventures with such entities and with government bodies; and enter into contracts in connection with its operations. Without limiting the power of the University to issue bonds, notes, guarantees, or other evidence of indebtedness pursuant to subsection D in connection with such activities, no such creation, ownership, or control shall create any responsibility of the University, the Commonwealth, or any agency of the Commonwealth for the operations or obligations of any such entity or in any way make the University, the Commonwealth, or any agency of the Commonwealth responsible for the payment of debt or other obligations of such entity. All such interests shall be reflected on the financial statements of the Medical Center.D\n\nNotwithstanding the provisions of Chapter 11 (\u00a7 23.1-1100 et seq.), the University may issue bonds, notes, guarantees, or other evidence of indebtedness without the approval of any other governmental body subject to the following provisions:1\n\nSuch debt is used solely for the purpose of paying not more than 50 percent of the cost of capital improvements in connection with the operation of the Medical Center or related issuance costs, reserve funds, and other financing expenses, including interest during construction and acquisitions and for up to one year thereafter.2\n\nThe only revenues of the University pledged to the payment of such debt are those derived from the operation of the Medical Center and related health care and educational activities, and no general fund appropriation and special Medicaid disproportionate share payments for indigent and medically indigent patients who are not eligible for the Virginia Medicaid Program is pledged for the payment of such debt.3\n\nSuch debt states that it does not constitute a debt of the Commonwealth or a pledge of the faith and credit of the Commonwealth.4\n\nSuch debt is not sold to the public.5\n\nThe total principal amount of such debt outstanding at any one time does not exceed $25 million.6\n\nThe Treasury Board approves the terms and structure of such debt.7\n\nThe purpose, terms, and structure of such debt are promptly communicated to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees.8\n\nAll such indebtedness is reflected on the financial statements of the Medical Center.E\n\nSubject to meeting the conditions set forth in subsection D, such debt may be in such form and have such terms as the board may provide and shall be in all respects debt of the University for the purposes of §§ 23.1-1110, 23.1-1115, and 23.1-1116.","order_by":null,"text":{"0":{"id":205920,"text":"The ability of the University to provide medical and health sciences education and related research is dependent upon the maintenance of high-quality teaching hospitals and related health care and health maintenance facilities, collectively referred to in this article as the Medical Center, and the maintenance of a Medical Center serving such purposes requires specialized management and operation that permit the Medical Center to remain economically viable and participate in cooperative arrangements reflective of changes in health care delivery.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":205921,"text":"Notwithstanding the provisions of § 32.1-124 exempting hospitals and nursing homes owned or operated by an agency of the Commonwealth from state licensure, the Medical Center shall be, for so long as the Medical Center maintains its accreditation by a national accrediting organization granted authority by the Centers for Medicare and Medicaid Services to ensure compliance with Medicare conditions of participation pursuant to § 1865 of Title XVIII of the Social Security Act (42 U.S.C. § 1395bb), deemed to be licensed as a hospital for purposes of other law relating to the operation of hospitals licensed by the Board of Health. The Medical Center shall not, however, be deemed to be a licensed hospital to the extent that any law relating to licensure of hospitals specifically excludes the Commonwealth or its agencies. As an agency of the Commonwealth, the Medical Center shall remain (i) exempt from licensure by the Board of Health pursuant to § 32.1-124 and (ii) subject to the Virginia Tort Claims Act (§ 8.01-195.1 et seq.). This subsection shall not be construed as a waiver of the Commonwealth’s sovereign immunity.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":205922,"text":"The University may create, own in whole or in part, or otherwise control corporations, partnerships, insurers, or other entities whose activities promote the operations of the Medical Center and its mission; cooperate or enter into joint ventures with such entities and with government bodies; and enter into contracts in connection with its operations. Without limiting the power of the University to issue bonds, notes, guarantees, or other evidence of indebtedness pursuant to subsection D in connection with such activities, no such creation, ownership, or control shall create any responsibility of the University, the Commonwealth, or any agency of the Commonwealth for the operations or obligations of any such entity or in any way make the University, the Commonwealth, or any agency of the Commonwealth responsible for the payment of debt or other obligations of such entity. All such interests shall be reflected on the financial statements of the Medical Center.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":205923,"text":"Notwithstanding the provisions of Chapter 11 (\u00a7 23.1-1100 et seq.), the University may issue bonds, notes, guarantees, or other evidence of indebtedness without the approval of any other governmental body subject to the following provisions:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"4":{"id":205924,"text":"Such debt is used solely for the purpose of paying not more than 50 percent of the cost of capital improvements in connection with the operation of the Medical Center or related issuance costs, reserve funds, and other financing expenses, including interest during construction and acquisitions and for up to one year thereafter.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"5":{"id":205925,"text":"The only revenues of the University pledged to the payment of such debt are those derived from the operation of the Medical Center and related health care and educational activities, and no general fund appropriation and special Medicaid disproportionate share payments for indigent and medically indigent patients who are not eligible for the Virginia Medicaid Program is pledged for the payment of such debt.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"6":{"id":205926,"text":"Such debt states that it does not constitute a debt of the Commonwealth or a pledge of the faith and credit of the Commonwealth.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"7":{"id":205927,"text":"Such debt is not sold to the public.","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"8":{"id":205928,"text":"The total principal amount of such debt outstanding at any one time does not exceed $25 million.","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"9":{"id":205929,"text":"The Treasury Board approves the terms and structure of such debt.","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"D7"},"10":{"id":205930,"text":"The purpose, terms, and structure of such debt are promptly communicated to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees.","type":"section","prefixes":["D","7"],"prefix":"7","entire_prefix":"D7","prefix_anchor":"D7","level":2,"prior_prefix":"D6","next_prefix":"D8"},"11":{"id":205931,"text":"All such indebtedness is reflected on the financial statements of the Medical Center.","type":"section","prefixes":["D","8"],"prefix":"8","entire_prefix":"D8","prefix_anchor":"D8","level":2,"prior_prefix":"D7","next_prefix":"E"},"12":{"id":205932,"text":"Subject to meeting the conditions set forth in subsection D, such debt may be in such form and have such terms as the board may provide and shall be in all respects debt of the University for the purposes of §§ 23.1-1110, 23.1-1115, and 23.1-1116.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D8"}},"ancestry":[{"id":14644,"edition_id":1,"name":"Medical Center","identifier":"3","label":"article","depth":4,"order_by":1,"parent_id":14394,"metadata":{},"date_created":"2026-06-26 03:49:03","date_modified":"2026-06-26 03:49:03","permalink":{"id":186221,"object_type":"structure","relational_id":14644,"identifier":"3","token":"23.1\/IV\/22\/3","url":"\/23.1\/IV\/22\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14394,"edition_id":1,"name":"University of Virginia","identifier":"22","label":"chapter","depth":3,"order_by":1,"parent_id":13798,"metadata":{},"date_created":"2026-06-26 03:47:59","date_modified":"2026-06-26 03:47:59","permalink":{"id":186167,"object_type":"structure","relational_id":14394,"identifier":"22","token":"23.1\/IV\/22","url":"\/23.1\/IV\/22\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13798,"edition_id":1,"name":"Public Institutions of Higher Education","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":13111,"metadata":{},"date_created":"2026-06-26 03:45:54","date_modified":"2026-06-26 03:45:54","permalink":{"id":185925,"object_type":"structure","relational_id":13798,"identifier":"IV","token":"23.1\/IV","url":"\/23.1\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13111,"edition_id":1,"name":"Institutions of Higher Education; Other Educational and Cultural Institutions","identifier":"23.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":184581,"object_type":"structure","relational_id":13111,"identifier":"23.1","token":"23.1","url":"\/23.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":56205,"structure_id":14644,"section_number":"23.1-2212","catch_line":"Operations of Medical Center","url":"\/23.1-2212\/","token":"23.1\/IV\/22\/3\/23.1-2212","metadata":false},{"id":67105,"structure_id":14644,"section_number":"23.1-2213","catch_line":"Medical center management; capital projects; leases of property; procurement","url":"\/23.1-2213\/","token":"23.1\/IV\/22\/3\/23.1-2213","metadata":false}],"next_section":{"id":67105,"structure_id":14644,"section_number":"23.1-2213","catch_line":"Medical center management; capital projects; leases of property; procurement","url":"\/23.1-2213\/","token":"23.1\/IV\/22\/3\/23.1-2213","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/23.1-2212\/","history_text":"

This law was first created in 1994. The record of its establishment is cataloged in chapter 621<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2003, chapter 701<\/a>; in 2014, chapter 320<\/a>; in 2016, chapter 588<\/a>.<\/p>","references":[{"id":67105,"section_number":"23.1-2213","catch_line":"Medical center management; capital projects; leases of property; procurement","order_by":null,"url":"\/23.1-2213\/"}],"refers_to":[{"id":55320,"section_number":"23.1-1100","catch_line":"Definitions","order_by":null,"url":"\/23.1-1100\/"},{"id":79864,"section_number":"23.1-1110","catch_line":"Bonds as legal investments","order_by":null,"url":"\/23.1-1110\/"},{"id":79583,"section_number":"23.1-1115","catch_line":"Projects; exemption from taxation","order_by":null,"url":"\/23.1-1115\/"},{"id":85366,"section_number":"23.1-1116","catch_line":"Commonwealth not to limit revenues of institutions","order_by":null,"url":"\/23.1-1116\/"},{"id":75042,"section_number":"32.1-124","catch_line":"Exemptions","order_by":null,"url":"\/32.1-124\/"},{"id":86997,"section_number":"8.01-195.1","catch_line":"Short title","order_by":null,"url":"\/8.01-195.1\/"}],"permalink":{"id":186223,"object_type":"law","relational_id":56205,"identifier":"23.1-2212","token":"23.1\/IV\/22\/3\/23.1-2212","url":"\/23.1-2212\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/23.1-2212\/","token":"23.1\/IV\/22\/3\/23.1-2212","dublin_core":{"Title":"Operations of Medical Center","Type":"Text","Format":"text\/html","Identifier":"\u00a7 23.1-2212","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The ability of the University to provide medical and health sciences education and related research is dependent upon the maintenance of high-quality teaching hospitals and related health care and health maintenance facilities, collectively referred to in this article as the Medical Center, and the maintenance of a Medical Center serving such purposes requires specialized management and operation that permit the Medical Center to remain economically viable and participate in cooperative arrangements reflective of changes in health care delivery. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding the provisions of § 32.1-124<\/a> exempting hospitals and nursing homes owned or operated by an agency of the Commonwealth from state licensure, the Medical Center shall be, for so long as the Medical Center maintains its accreditation by a national accrediting organization granted authority by the Centers for Medicare and Medicaid Services to ensure compliance with Medicare conditions of participation pursuant to § 1865 of Title XVIII of the Social Security Act (42 U.S.C. § 1395bb), deemed to be licensed as a hospital for purposes of other law<\/span> relating to the operation of hospitals licensed by the Board of Health. The Medical Center shall not, however, be deemed to be a licensed hospital to the extent that any law<\/span> relating to licensure of hospitals specifically excludes the Commonwealth or its agencies. As an agency of the Commonwealth, the Medical Center shall remain (i) exempt from licensure by the Board of Health pursuant to § 32.1-124<\/a> and (ii) subject to the Virginia Tort<\/span> Claims Act (§ 8.01-195.1<\/a> et seq.). This subsection shall not be construed as a waiver<\/span> of the Commonwealth’s sovereign immunity. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The University may create, own in whole or in part, or otherwise control corporations, partnerships, insurers, or other entities whose activities promote the operations of the Medical Center and its mission; cooperate or enter into joint ventures with such entities and with government bodies; and enter into contracts<\/span> in connection with its operations. Without limiting the power of the University to issue<\/span> bonds<\/span>, notes, guarantees, or other evidence<\/span> of indebtedness pursuant to subsection D in connection with such activities, no such creation, ownership, or control shall create any responsibility of the University, the Commonwealth, or any agency of the Commonwealth for the operations or obligations of any such entity or in any way make the University, the Commonwealth, or any agency of the Commonwealth responsible for the payment of debt or other obligations of such entity. All such interests shall be reflected on the financial statements of the Medical Center. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Notwithstanding the provisions of Chapter 11 (\u00a7 23.1-1100<\/a> et seq.), the University may issue<\/span> bonds<\/span>, notes, guarantees, or other evidence<\/span> of indebtedness without the approval of any other governmental body subject to the following provisions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Such debt is used solely for the purpose of paying not more than 50 percent of the cost of capital improvements in connection with the operation of the Medical Center or related issuance costs, reserve funds, and other financing expenses, including interest during construction and acquisitions and for up to one year thereafter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The only revenues of the University pledged to the payment of such debt are those derived from the operation of the Medical Center and related health care and educational activities, and no general fund appropriation and special Medicaid disproportionate share payments for indigent<\/span> and medically indigent<\/span> patients who are not eligible for the Virginia Medicaid Program is pledged for the payment of such debt. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Such debt states that it does not constitute a debt of the Commonwealth or a pledge of the faith and credit of the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Such debt is not sold to the public. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The total principal amount of such debt outstanding at any one time does not exceed $25 million. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The Treasury Board approves the terms and structure of such debt. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The purpose, terms, and structure of such debt are promptly communicated to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> All such indebtedness is reflected on the financial statements of the Medical Center. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Subject to meeting the conditions set forth in subsection D, such debt may be in such form and have such terms as the board may provide and shall be in all respects debt of the University for the purposes of §§ 23.1-1110<\/a>, 23.1-1115<\/a>, and 23.1-1116<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nOPERATIONS OF MEDICAL CENTER (\u00a7 23.1-2212)\n\nA. The ability of the University to provide medical and health sciences\neducation and related research is dependent upon the maintenance of high-quality\nteaching hospitals and related health care and health maintenance facilities,\ncollectively referred to in this article as the Medical Center, and the\nmaintenance of a Medical Center serving such purposes requires specialized\nmanagement and operation that permit the Medical Center to remain economically\nviable and participate in cooperative arrangements reflective of changes in\nhealth care delivery.\n\nB. Notwithstanding the provisions of § 32.1-124 exempting hospitals and\nnursing homes owned or operated by an agency of the Commonwealth from state\nlicensure, the Medical Center shall be, for so long as the Medical Center\nmaintains its accreditation by a national accrediting organization granted\nauthority by the Centers for Medicare and Medicaid Services to ensure compliance\nwith Medicare conditions of participation pursuant to § 1865 of Title XVIII\nof the Social Security Act (42 U.S.C. § 1395bb), deemed to be licensed as a\nhospital for purposes of other law relating to the operation of hospitals\nlicensed by the Board of Health. The Medical Center shall not, however, be\ndeemed to be a licensed hospital to the extent that any law relating to\nlicensure of hospitals specifically excludes the Commonwealth or its agencies.\nAs an agency of the Commonwealth, the Medical Center shall remain (i) exempt\nfrom licensure by the Board of Health pursuant to § 32.1-124 and (ii)\nsubject to the Virginia Tort Claims Act (§ 8.01-195.1 et seq.). This\nsubsection shall not be construed as a waiver of the Commonwealth’s\nsovereign immunity.\n\nC. The University may create, own in whole or in part, or otherwise control\ncorporations, partnerships, insurers, or other entities whose activities promote\nthe operations of the Medical Center and its mission; cooperate or enter into\njoint ventures with such entities and with government bodies; and enter into\ncontracts in connection with its operations. Without limiting the power of the\nUniversity to issue bonds, notes, guarantees, or other evidence of indebtedness\npursuant to subsection D in connection with such activities, no such creation,\nownership, or control shall create any responsibility of the University, the\nCommonwealth, or any agency of the Commonwealth for the operations or\nobligations of any such entity or in any way make the University, the\nCommonwealth, or any agency of the Commonwealth responsible for the payment of\ndebt or other obligations of such entity. All such interests shall be reflected\non the financial statements of the Medical Center.\n\nD. Notwithstanding the provisions of Chapter 11 (\u00a7 23.1-1100 et seq.), the\nUniversity may issue bonds, notes, guarantees, or other evidence of indebtedness\nwithout the approval of any other governmental body subject to the following\nprovisions:\n\n 1. Such debt is used solely for the purpose of paying not more than 50 percent\n of the cost of capital improvements in connection with the operation of the\n Medical Center or related issuance costs, reserve funds, and other financing\n expenses, including interest during construction and acquisitions and for up\n to one year thereafter.\n\n 2. The only revenues of the University pledged to the payment of such debt are\n those derived from the operation of the Medical Center and related health care\n and educational activities, and no general fund appropriation and special\n Medicaid disproportionate share payments for indigent and medically indigent\n patients who are not eligible for the Virginia Medicaid Program is pledged for\n the payment of such debt.\n\n 3. Such debt states that it does not constitute a debt of the Commonwealth or\n a pledge of the faith and credit of the Commonwealth.\n\n 4. Such debt is not sold to the public.\n\n 5. The total principal amount of such debt outstanding at any one time does\n not exceed $25 million.\n\n 6. The Treasury Board approves the terms and structure of such debt.\n\n 7. The purpose, terms, and structure of such debt are promptly communicated to\n the Governor and the Chairmen of the House Appropriations and Senate Finance\n Committees.\n\n 8. All such indebtedness is reflected on the financial statements of the\n Medical Center.\n\nE. Subject to meeting the conditions set forth in subsection D, such debt may be\nin such form and have such terms as the board may provide and shall be in all\nrespects debt of the University for the purposes of §§ 23.1-1110,\n23.1-1115, and 23.1-1116.\n\nHISTORY: 1994, c. 621, \u00a7 23-77.3; 2003, c. 701; 2014, c. 320; 2016, c. 588.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}