{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/23.1-2412.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/23.1-2412.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/23.1-2412.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/23.1-2412.html"}],"law_id":64806,"edition_id":1,"section_id":64806,"structure_id":13799,"section_number":"23.1-2412","catch_line":"Transfer of existing hospital facilities","history":"1996, cc. 905, 1046, \u00a7\u00a7 23-50.16:17, 23-50.16:20, 23-50.16:21, 23-50.16:22, 23-50.16:23; 2016, c. 588.","full_text":"A\n\nThe University may lease, convey, or otherwise transfer to the Authority any or all assets and liabilities appearing on the balance sheet of MCV Hospitals and any or all of the hospital facilities, except real estate that may be leased to the Authority for a term not to exceed 99 years, upon such terms as may be approved by the University.B\n\nAny transfer of hospital facilities pursuant to subsection A is conditioned upon the existence of a binding agreement between the University and the Authority:1\n\nThat requires the Authority to assume, directly or indirectly, hospital obligations that are directly relating to the hospital facilities or any part of the hospital facilities that are transferred, including rentals as provided in subsection C or a combination of rentals and other obligations in the case of a lease of hospital facilities;2\n\nThat provides that, effective on the transfer date, the Authority shall assume responsibility for, defend, indemnify, and hold harmless the University and its officers and directors with respect to:\n\t\t\t\ta. All liabilities and duties of the University pursuant to contracts, agreements, and leases for commodities, services, and supplies used by MCV Hospitals, including property leases;\n\t\t\t\tb. All claims relating to the employment relationship between employees of the Authority and the University on and after the transfer date;\n\t\t\t\tc. All claims for breach of contract resulting from the Authority’s action or failure to act on and after the transfer date;\n\t\t\t\td. All claims relating to the Authority’s errors and omissions, including medical malpractice, directors’ and officers’ liability, workers’ compensation, automobile liability, premises liability, completed operations liability, and products liability resulting from the Authority’s action or failure to act on and after the transfer date; and3\n\nBy which the Authority shall accept and agree to abide by provisions that ensure the continued support of the education, research, patient care, and public service missions of MCV Hospitals, including:\n\t\t\t\ta. A requirement that the Authority continue to provide emergency and inpatient indigent care services on the MCV campus of the University in locations including downtown Richmond; and\n\t\t\t\tb. A requirement that the Authority continue to act as the primary teaching facility for the Virginia Commonwealth University School of Medicine and the Health Sciences Schools of the University.C\n\nAny lease of hospital facilities from the University to the Authority may include a provision that requires the Authority to pay the University a rental payment for the hospital facilities that are leased. For those hospital facilities for which rent is paid, the rent shall be at least equal to the greater of:1\n\nThe debt service accruing during the term of the lease on all outstanding bonds issued for the purpose of financing the acquisition, construction, or improvement of the hospital facilities on which rent is paid; or2\n\nA nominal amount determined by the parties to be necessary to prevent the lease from being unenforceable because of a lack of consideration.D\n\nAny lease of hospital facilities shall include a provision that requires the Authority to continue to support the education, research, patient care, and public service missions of MCV Hospitals, including:1\n\nA requirement that the Authority continue to provide emergency and inpatient indigent care services on the MCV campus of the University in locations including downtown Richmond; and2\n\nA requirement that the Authority continue to act as the primary teaching facility for the Health Sciences Schools of the University.E\n\nAll other agencies and officers of the Commonwealth shall take such actions as may be necessary or desirable in the judgment of the University to permit such conveyance and the full use and enjoyment of the hospital facilities, including the transfer of property of any type held in the name of the Commonwealth or an instrumentality or agency of the Commonwealth but used by the University in the operation of the hospital facilities.F\n\nThe Authority may pay to or on behalf of the University some or all of the costs of the hospital facilities. The University may apply some or all of such proceeds to the payment or defeasance of its obligations issued to finance the hospital facilities, and the Authority may issue its bonds to finance or refinance such payment.G\n\nFunds held by or for the University or any of its predecessors or divisions, including funds held by the University Foundation or the MCV Foundation for the benefit of MCV Hospitals or any of its predecessors for use in operating, maintaining, or constructing hospital facilities, providing medical and health sciences education, or conducting medical or related research may be transferred, in whole or in part, to the Authority if the University or any foundation determines that the transfer is consistent with the intended use of the funds. The University may direct in writing that all or part of the money or property representing its beneficial interest under a will, trust agreement, or other donative instrument be distributed to the Authority if the University determines that such direction furthers any of the original purposes of the will, trust agreement, or other instrument. Such a direction shall not be considered a waiver, disclaimer, renunciation, assignment, or disposition of the beneficial interest by the University. A fiduciary’s distribution to the Authority pursuant to such a written direction from the University is a distribution to the University for all purposes relating to the donative instrument, and the fiduciary has no liability for distributing any money or property to the Authority pursuant to such a direction. Nothing in this section shall deprive any court of its jurisdiction to determine whether such a distribution is appropriate under its cy pres powers or otherwise.H\n\nThe Authority shall not operate any hospital pursuant to this section prior to execution of the lease and agreement required by this section and such other agreements as may be necessary or convenient in the University’s judgment to provide for the transfer of the operations of the hospital facilities to the Authority, unless and to the extent that the University approves otherwise.I\n\nThe University may assign and the Authority may accept the rights and assume the obligations under any contract or other agreement of any type relating to financing or operating the hospital facilities. Upon evidence that such assignment and acceptance has been made, all agencies and instrumentalities of the Commonwealth shall consent to such assignment and accept the substitution of the Authority for the University as a party to such agreement to the extent that the University’s obligations under such agreement relate to the ownership, operation, or financing of the hospital facilities. Indebtedness previously incurred by the Commonwealth, the Virginia Public Building Authority, the Virginia College Building Authority, and any other agency or instrumentality of the Commonwealth to finance the hospital facilities may continue to remain outstanding after the transfer and assignment of such agreement by the University to the Authority.J\n\nThe transfer of the hospital facilities from the University to the Authority does not require a certificate of public need pursuant to Article 1.1 (§ 32.1-102.1 et seq.) of Chapter 4 of Title 32.1. All licenses, permits, certificates of public need, or other authorizations of the Commonwealth, any agency of the Commonwealth, or any locality held by the University in connection with the ownership or operation of the hospital facilities are transferred without further action to the Authority to the extent that the Authority undertakes the activity permitted by such authorizations. All agencies and officers of the Commonwealth and all localities shall confirm such transfer by the issuance of new or amended licenses, permits, certificates of public need, or other authorizations upon the request of the University and the Authority.K\n\nIf for any reason the Authority cannot replace the University as a party to any agreement in connection with the financing, ownership, or operation of the hospital facilities, the Authority and the University may require the Authority to act as agent for the University in carrying out its obligations under such agreement or receiving the benefits under such agreement, or both.","order_by":null,"text":{"0":{"id":235855,"text":"The University may lease, convey, or otherwise transfer to the Authority any or all assets and liabilities appearing on the balance sheet of MCV Hospitals and any or all of the hospital facilities, except real estate that may be leased to the Authority for a term not to exceed 99 years, upon such terms as may be approved by the University.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":235856,"text":"Any transfer of hospital facilities pursuant to subsection A is conditioned upon the existence of a binding agreement between the University and the Authority:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":235857,"text":"That requires the Authority to assume, directly or indirectly, hospital obligations that are directly relating to the hospital facilities or any part of the hospital facilities that are transferred, including rentals as provided in subsection C or a combination of rentals and other obligations in the case of a lease of hospital facilities;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":235858,"text":"That provides that, effective on the transfer date, the Authority shall assume responsibility for, defend, indemnify, and hold harmless the University and its officers and directors with respect to:\n\t\t\t\ta. All liabilities and duties of the University pursuant to contracts, agreements, and leases for commodities, services, and supplies used by MCV Hospitals, including property leases;\n\t\t\t\tb. All claims relating to the employment relationship between employees of the Authority and the University on and after the transfer date;\n\t\t\t\tc. All claims for breach of contract resulting from the Authority’s action or failure to act on and after the transfer date;\n\t\t\t\td. All claims relating to the Authority’s errors and omissions, including medical malpractice, directors’ and officers’ liability, workers’ compensation, automobile liability, premises liability, completed operations liability, and products liability resulting from the Authority’s action or failure to act on and after the transfer date; and","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":235859,"text":"By which the Authority shall accept and agree to abide by provisions that ensure the continued support of the education, research, patient care, and public service missions of MCV Hospitals, including:\n\t\t\t\ta. A requirement that the Authority continue to provide emergency and inpatient indigent care services on the MCV campus of the University in locations including downtown Richmond; and\n\t\t\t\tb. A requirement that the Authority continue to act as the primary teaching facility for the Virginia Commonwealth University School of Medicine and the Health Sciences Schools of the University.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":235860,"text":"Any lease of hospital facilities from the University to the Authority may include a provision that requires the Authority to pay the University a rental payment for the hospital facilities that are leased. For those hospital facilities for which rent is paid, the rent shall be at least equal to the greater of:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"C1"},"6":{"id":235861,"text":"The debt service accruing during the term of the lease on all outstanding bonds issued for the purpose of financing the acquisition, construction, or improvement of the hospital facilities on which rent is paid; or","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"7":{"id":235862,"text":"A nominal amount determined by the parties to be necessary to prevent the lease from being unenforceable because of a lack of consideration.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"8":{"id":235863,"text":"Any lease of hospital facilities shall include a provision that requires the Authority to continue to support the education, research, patient care, and public service missions of MCV Hospitals, including:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"D1"},"9":{"id":235864,"text":"A requirement that the Authority continue to provide emergency and inpatient indigent care services on the MCV campus of the University in locations including downtown Richmond; and","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"10":{"id":235865,"text":"A requirement that the Authority continue to act as the primary teaching facility for the Health Sciences Schools of the University.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"E"},"11":{"id":235866,"text":"All other agencies and officers of the Commonwealth shall take such actions as may be necessary or desirable in the judgment of the University to permit such conveyance and the full use and enjoyment of the hospital facilities, including the transfer of property of any type held in the name of the Commonwealth or an instrumentality or agency of the Commonwealth but used by the University in the operation of the hospital facilities.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D2","next_prefix":"F"},"12":{"id":235867,"text":"The Authority may pay to or on behalf of the University some or all of the costs of the hospital facilities. The University may apply some or all of such proceeds to the payment or defeasance of its obligations issued to finance the hospital facilities, and the Authority may issue its bonds to finance or refinance such payment.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"13":{"id":235868,"text":"Funds held by or for the University or any of its predecessors or divisions, including funds held by the University Foundation or the MCV Foundation for the benefit of MCV Hospitals or any of its predecessors for use in operating, maintaining, or constructing hospital facilities, providing medical and health sciences education, or conducting medical or related research may be transferred, in whole or in part, to the Authority if the University or any foundation determines that the transfer is consistent with the intended use of the funds. The University may direct in writing that all or part of the money or property representing its beneficial interest under a will, trust agreement, or other donative instrument be distributed to the Authority if the University determines that such direction furthers any of the original purposes of the will, trust agreement, or other instrument. Such a direction shall not be considered a waiver, disclaimer, renunciation, assignment, or disposition of the beneficial interest by the University. A fiduciary’s distribution to the Authority pursuant to such a written direction from the University is a distribution to the University for all purposes relating to the donative instrument, and the fiduciary has no liability for distributing any money or property to the Authority pursuant to such a direction. Nothing in this section shall deprive any court of its jurisdiction to determine whether such a distribution is appropriate under its cy pres powers or otherwise.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"14":{"id":235869,"text":"The Authority shall not operate any hospital pursuant to this section prior to execution of the lease and agreement required by this section and such other agreements as may be necessary or convenient in the University’s judgment to provide for the transfer of the operations of the hospital facilities to the Authority, unless and to the extent that the University approves otherwise.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"15":{"id":235870,"text":"The University may assign and the Authority may accept the rights and assume the obligations under any contract or other agreement of any type relating to financing or operating the hospital facilities. Upon evidence that such assignment and acceptance has been made, all agencies and instrumentalities of the Commonwealth shall consent to such assignment and accept the substitution of the Authority for the University as a party to such agreement to the extent that the University’s obligations under such agreement relate to the ownership, operation, or financing of the hospital facilities. Indebtedness previously incurred by the Commonwealth, the Virginia Public Building Authority, the Virginia College Building Authority, and any other agency or instrumentality of the Commonwealth to finance the hospital facilities may continue to remain outstanding after the transfer and assignment of such agreement by the University to the Authority.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"16":{"id":235871,"text":"The transfer of the hospital facilities from the University to the Authority does not require a certificate of public need pursuant to Article 1.1 (§ 32.1-102.1 et seq.) of Chapter 4 of Title 32.1. All licenses, permits, certificates of public need, or other authorizations of the Commonwealth, any agency of the Commonwealth, or any locality held by the University in connection with the ownership or operation of the hospital facilities are transferred without further action to the Authority to the extent that the Authority undertakes the activity permitted by such authorizations. All agencies and officers of the Commonwealth and all localities shall confirm such transfer by the issuance of new or amended licenses, permits, certificates of public need, or other authorizations upon the request of the University and the Authority.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"17":{"id":235872,"text":"If for any reason the Authority cannot replace the University as a party to any agreement in connection with the financing, ownership, or operation of the hospital facilities, the Authority and the University may require the Authority to act as agent for the University in carrying out its obligations under such agreement or receiving the benefits under such agreement, or both.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J"}},"ancestry":[{"id":13799,"edition_id":1,"name":"Virginia Commonwealth University Health System Authority","identifier":"24","label":"chapter","depth":3,"order_by":1,"parent_id":13798,"metadata":{},"date_created":"2026-06-26 03:45:54","date_modified":"2026-06-26 03:45:54","permalink":{"id":186325,"object_type":"structure","relational_id":13799,"identifier":"24","token":"23.1\/IV\/24","url":"\/23.1\/IV\/24\/","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":65528,"structure_id":13799,"section_number":"23.1-2400","catch_line":"Definitions","url":"\/23.1-2400\/","token":"23.1\/IV\/24\/23.1-2400","metadata":false},{"id":87275,"structure_id":13799,"section_number":"23.1-2401","catch_line":"Authority established; powers, purposes, and duties","url":"\/23.1-2401\/","token":"23.1\/IV\/24\/23.1-2401","metadata":false},{"id":83861,"structure_id":13799,"section_number":"23.1-2402","catch_line":"Board of directors; membership; meetings; officers; employees","url":"\/23.1-2402\/","token":"23.1\/IV\/24\/23.1-2402","metadata":false},{"id":65699,"structure_id":13799,"section_number":"23.1-2403","catch_line":"Chief executive officer of the Authority","url":"\/23.1-2403\/","token":"23.1\/IV\/24\/23.1-2403","metadata":false},{"id":84554,"structure_id":13799,"section_number":"23.1-2404","catch_line":"Powers of the Authority","url":"\/23.1-2404\/","token":"23.1\/IV\/24\/23.1-2404","metadata":false},{"id":79075,"structure_id":13799,"section_number":"23.1-2405","catch_line":"Additional powers of the Authority; operation of projects","url":"\/23.1-2405\/","token":"23.1\/IV\/24\/23.1-2405","metadata":false},{"id":76209,"structure_id":13799,"section_number":"23.1-2406","catch_line":"Additional powers of the Authority; police","url":"\/23.1-2406\/","token":"23.1\/IV\/24\/23.1-2406","metadata":false},{"id":70929,"structure_id":13799,"section_number":"23.1-2407","catch_line":"Public purpose","url":"\/23.1-2407\/","token":"23.1\/IV\/24\/23.1-2407","metadata":false},{"id":69160,"structure_id":13799,"section_number":"23.1-2408","catch_line":"Moneys of the Authority","url":"\/23.1-2408\/","token":"23.1\/IV\/24\/23.1-2408","metadata":false},{"id":72231,"structure_id":13799,"section_number":"23.1-2409","catch_line":"Grants and loans from localities","url":"\/23.1-2409\/","token":"23.1\/IV\/24\/23.1-2409","metadata":false},{"id":84421,"structure_id":13799,"section_number":"23.1-2410","catch_line":"Audit","url":"\/23.1-2410\/","token":"23.1\/IV\/24\/23.1-2410","metadata":false},{"id":81759,"structure_id":13799,"section_number":"23.1-2411","catch_line":"Exemption from taxation","url":"\/23.1-2411\/","token":"23.1\/IV\/24\/23.1-2411","metadata":false},{"id":64806,"structure_id":13799,"section_number":"23.1-2412","catch_line":"Transfer of existing hospital facilities","url":"\/23.1-2412\/","token":"23.1\/IV\/24\/23.1-2412","metadata":false},{"id":67264,"structure_id":13799,"section_number":"23.1-2413","catch_line":"Capital projects","url":"\/23.1-2413\/","token":"23.1\/IV\/24\/23.1-2413","metadata":false},{"id":82926,"structure_id":13799,"section_number":"23.1-2414","catch_line":"Leases of property","url":"\/23.1-2414\/","token":"23.1\/IV\/24\/23.1-2414","metadata":false},{"id":79842,"structure_id":13799,"section_number":"23.1-2415","catch_line":"Employees of the Authority","url":"\/23.1-2415\/","token":"23.1\/IV\/24\/23.1-2415","metadata":false},{"id":54806,"structure_id":13799,"section_number":"23.1-2416","catch_line":"Retirement benefits for employees of the Authority","url":"\/23.1-2416\/","token":"23.1\/IV\/24\/23.1-2416","metadata":false},{"id":63807,"structure_id":13799,"section_number":"23.1-2417","catch_line":"Insurance for employees of the Authority","url":"\/23.1-2417\/","token":"23.1\/IV\/24\/23.1-2417","metadata":false},{"id":84438,"structure_id":13799,"section_number":"23.1-2418","catch_line":"Power to issue bonds","url":"\/23.1-2418\/","token":"23.1\/IV\/24\/23.1-2418","metadata":false},{"id":81901,"structure_id":13799,"section_number":"23.1-2419","catch_line":"Liability on bonds","url":"\/23.1-2419\/","token":"23.1\/IV\/24\/23.1-2419","metadata":false},{"id":79367,"structure_id":13799,"section_number":"23.1-2420","catch_line":"Form of bonds","url":"\/23.1-2420\/","token":"23.1\/IV\/24\/23.1-2420","metadata":false},{"id":55443,"structure_id":13799,"section_number":"23.1-2421","catch_line":"Trust indentures and mortgages; security for the bonds","url":"\/23.1-2421\/","token":"23.1\/IV\/24\/23.1-2421","metadata":false},{"id":62976,"structure_id":13799,"section_number":"23.1-2422","catch_line":"Remedies of obligees of Authority","url":"\/23.1-2422\/","token":"23.1\/IV\/24\/23.1-2422","metadata":false},{"id":83360,"structure_id":13799,"section_number":"23.1-2423","catch_line":"Bonds to be legal investments","url":"\/23.1-2423\/","token":"23.1\/IV\/24\/23.1-2423","metadata":false},{"id":82595,"structure_id":13799,"section_number":"23.1-2424","catch_line":"Existing bonds","url":"\/23.1-2424\/","token":"23.1\/IV\/24\/23.1-2424","metadata":false},{"id":76552,"structure_id":13799,"section_number":"23.1-2425","catch_line":"Confidential and public information","url":"\/23.1-2425\/","token":"23.1\/IV\/24\/23.1-2425","metadata":false},{"id":61120,"structure_id":13799,"section_number":"23.1-2426","catch_line":"Chapter liberally construed","url":"\/23.1-2426\/","token":"23.1\/IV\/24\/23.1-2426","metadata":false},{"id":73772,"structure_id":13799,"section_number":"23.1-2427","catch_line":"Exemptions","url":"\/23.1-2427\/","token":"23.1\/IV\/24\/23.1-2427","metadata":false},{"id":58579,"structure_id":13799,"section_number":"23.1-2428","catch_line":"Assets of Authority; reversion to University","url":"\/23.1-2428\/","token":"23.1\/IV\/24\/23.1-2428","metadata":false}],"previous_section":{"id":81759,"structure_id":13799,"section_number":"23.1-2411","catch_line":"Exemption from taxation","url":"\/23.1-2411\/","token":"23.1\/IV\/24\/23.1-2411","metadata":false},"next_section":{"id":67264,"structure_id":13799,"section_number":"23.1-2413","catch_line":"Capital projects","url":"\/23.1-2413\/","token":"23.1\/IV\/24\/23.1-2413","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/23.1-2412\/","history_text":"

This law was first created in 1996. The record of its establishment is cataloged in chapters 905<\/a> and 1046<\/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 1 time. 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. That modification is as follows: in 2016, chapter 588<\/a>.<\/p>","references":false,"refers_to":[{"id":77111,"section_number":"32.1-102.1","catch_line":"Definitions","order_by":null,"url":"\/32.1-102.1\/"}],"permalink":{"id":186375,"object_type":"law","relational_id":64806,"identifier":"23.1-2412","token":"23.1\/IV\/24\/23.1-2412","url":"\/23.1-2412\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/23.1-2412\/","token":"23.1\/IV\/24\/23.1-2412","dublin_core":{"Title":"Transfer of existing hospital facilities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 23.1-2412","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The University<\/span> may lease, convey, or otherwise transfer to the Authority<\/span> any or all assets<\/span> and liabilities appearing on the balance sheet of MCV Hospitals and any or all of the hospital facilities<\/span>, except real estate that may be leased to the Authority<\/span> for a term not to exceed 99 years, upon such terms as may be approved by the University<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any transfer of hospital facilities<\/span> pursuant to subsection A is conditioned upon the existence of a binding agreement between the University<\/span> and the Authority<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> That requires the Authority<\/span> to assume, directly or indirectly, hospital obligations<\/span> that are directly relating to the hospital facilities<\/span> or any part of the hospital facilities<\/span> that are transferred, including rentals as provided in subsection C or a combination of rentals and other obligations in the case of a lease of hospital facilities<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> That provides that, effective on the transfer date<\/span>, the Authority<\/span> shall assume responsibility for, defend, indemnify, and hold harmless the University<\/span> and its officers and directors with respect to:\n\t\t\t\ta. All liabilities and duties of the University<\/span> pursuant to contracts<\/span>, agreements, and leases for commodities, services, and supplies used by MCV Hospitals, including property leases;\n\t\t\t\tb. All claims relating to the employment relationship between employees of the Authority<\/span> and the University<\/span> on and after the transfer date<\/span>;\n\t\t\t\tc. All claims for breach of contract<\/span> resulting from the Authority<\/span>’s action or failure to act on and after the transfer date<\/span>;\n\t\t\t\td. All claims relating to the Authority<\/span>’s errors and omissions, including medical malpractice, directors’ and officers’ liability, workers’ compensation, automobile liability, premises liability, completed operations liability, and products liability resulting from the Authority<\/span>’s action or failure to act on and after the transfer date<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> By which the Authority<\/span> shall accept and agree to abide by provisions that ensure the continued support of the education, research, patient care, and public service missions of MCV Hospitals, including:\n\t\t\t\ta. A requirement that the Authority<\/span> continue to provide emergency and inpatient indigent<\/span> care services on the MCV campus of the University<\/span> in locations including downtown Richmond; and\n\t\t\t\tb. A requirement that the Authority<\/span> continue to act as the primary teaching facility for the Virginia Commonwealth University<\/span> School of Medicine and the Health Sciences Schools of the University<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any lease of hospital facilities<\/span> from the University<\/span> to the Authority<\/span> may include a provision that requires the Authority<\/span> to pay the University<\/span> a rental payment for the hospital facilities<\/span> that are leased. For those hospital facilities<\/span> for which rent is paid, the rent shall be at least equal to the greater of: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The debt service accruing during the term of the lease on all outstanding bonds<\/span><\/span> issued for the purpose of financing the acquisition, construction, or improvement of the hospital facilities<\/span> on which rent is paid; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A nominal amount determined by the parties to be necessary to prevent the lease from being unenforceable because of a lack of consideration. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Any lease of hospital facilities<\/span> shall include a provision that requires the Authority<\/span> to continue to support the education, research, patient care, and public service missions of MCV Hospitals, including: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A requirement that the Authority<\/span> continue to provide emergency and inpatient indigent<\/span> care services on the MCV campus of the University<\/span> in locations including downtown Richmond; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A requirement that the Authority<\/span> continue to act as the primary teaching facility for the Health Sciences Schools of the University<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> All other agencies and officers of the Commonwealth shall take such actions as may be necessary or desirable in the judgment<\/span> of the University<\/span> to permit such conveyance and the full use and enjoyment of the hospital facilities<\/span>, including the transfer of property of any type held in the name of the Commonwealth or an instrumentality or agency of the Commonwealth but used by the University<\/span> in the operation of the hospital facilities<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The Authority<\/span> may pay to or on behalf of the University<\/span> some or all of the costs<\/span> of the hospital facilities<\/span>. The University<\/span> may apply some or all of such proceeds to the payment or defeasance of its obligations issued to finance the hospital facilities<\/span>, and the Authority<\/span> may issue<\/span> its bonds<\/span><\/span> to finance or refinance such payment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Funds held by or for the University<\/span> or any of its predecessors or divisions, including funds held by the University<\/span> Foundation or the MCV Foundation for the benefit of MCV Hospitals or any of its predecessors for use in operating, maintaining, or constructing hospital facilities<\/span>, providing medical and health sciences education, or conducting medical or related research may be transferred, in whole or in part, to the Authority<\/span> if the University<\/span> or any foundation determines that the transfer is consistent with the intended use of the funds. The University<\/span> may direct in writing that all or part of the money or property representing its beneficial interest under a will, trust agreement, or other donative instrument be distributed to the Authority<\/span> if the University<\/span> determines that such direction furthers any of the original purposes of the will, trust agreement, or other instrument. Such a direction shall not be considered a waiver<\/span>, disclaimer, renunciation, assignment, or disposition<\/span> of the beneficial interest by the University<\/span>. A fiduciary’s distribution to the Authority<\/span> pursuant to such a written direction from the University<\/span> is a distribution to the University<\/span> for all purposes relating to the donative instrument, and the fiduciary has no liability for distributing any money or property to the Authority<\/span> pursuant to such a direction. Nothing in this section shall deprive any court<\/span> of its jurisdiction<\/span> to determine whether such a distribution is appropriate under its cy pres powers or otherwise. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> The Authority<\/span> shall not operate any hospital pursuant to this section prior to execution of the lease and agreement required by this section and such other agreements as may be necessary or convenient in the University<\/span>’s judgment<\/span> to provide for the transfer of the operations of the hospital facilities<\/span> to the Authority<\/span>, unless and to the extent that the University<\/span> approves otherwise. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> The University<\/span> may assign and the Authority<\/span> may accept the rights and assume the obligations under any contract<\/span> or other agreement of any type relating to financing or operating the hospital facilities<\/span>. Upon evidence<\/span> that such assignment and acceptance has been made, all agencies and instrumentalities of the Commonwealth shall consent to such assignment and accept the substitution of the Authority<\/span> for the University<\/span> as a party<\/span> to such agreement to the extent that the University<\/span>’s obligations under such agreement relate to the ownership, operation, or financing of the hospital facilities<\/span>. Indebtedness previously incurred by the Commonwealth, the Virginia Public Building Authority<\/span>, the Virginia College Building Authority<\/span>, and any other agency or instrumentality of the Commonwealth to finance the hospital facilities<\/span> may continue to remain outstanding after the transfer and assignment of such agreement by the University<\/span> to the Authority<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> The transfer of the hospital facilities<\/span> from the University<\/span> to the Authority<\/span> does not require a certificate of public need pursuant to Article 1.1 (§ 32.1-102.1<\/a> et seq.) of Chapter 4 of Title 32.1. All licenses, permits, certificates of public need, or other authorizations of the Commonwealth, any agency of the Commonwealth, or any locality held by the University<\/span> in connection with the ownership or operation of the hospital facilities<\/span> are transferred without further action to the Authority<\/span> to the extent that the Authority<\/span> undertakes the activity permitted by such authorizations. All agencies and officers of the Commonwealth and all localities shall confirm such transfer by the issuance of new or amended licenses, permits, certificates of public need, or other authorizations upon the request of the University<\/span> and the Authority<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> If for any reason the Authority<\/span> cannot replace the University<\/span> as a party<\/span> to any agreement in connection with the financing, ownership, or operation of the hospital facilities<\/span>, the Authority<\/span> and the University<\/span> may require the Authority<\/span> to act as agent for the University<\/span> in carrying out its obligations under such agreement or receiving the benefits under such agreement, or both. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTRANSFER OF EXISTING HOSPITAL FACILITIES (\u00a7 23.1-2412)\n\nA. The University may lease, convey, or otherwise transfer to the Authority any\nor all assets and liabilities appearing on the balance sheet of MCV Hospitals\nand any or all of the hospital facilities, except real estate that may be leased\nto the Authority for a term not to exceed 99 years, upon such terms as may be\napproved by the University.\n\nB. Any transfer of hospital facilities pursuant to subsection A is conditioned\nupon the existence of a binding agreement between the University and the\nAuthority:\n\n 1. That requires the Authority to assume, directly or indirectly, hospital\n obligations that are directly relating to the hospital facilities or any part\n of the hospital facilities that are transferred, including rentals as provided\n in subsection C or a combination of rentals and other obligations in the case\n of a lease of hospital facilities;\n\n 2. That provides that, effective on the transfer date, the Authority shall\n assume responsibility for, defend, indemnify, and hold harmless the University\n and its officers and directors with respect to:\n \t\t\t\ta. All liabilities and duties of the University pursuant to contracts,\n agreements, and leases for commodities, services, and supplies used by MCV\n Hospitals, including property leases;\n \t\t\t\tb. All claims relating to the employment relationship between employees of\n the Authority and the University on and after the transfer date;\n \t\t\t\tc. All claims for breach of contract resulting from the Authority’s\n action or failure to act on and after the transfer date;\n \t\t\t\td. All claims relating to the Authority’s errors and omissions,\n including medical malpractice, directors’ and officers’ liability,\n workers’ compensation, automobile liability, premises liability,\n completed operations liability, and products liability resulting from the\n Authority’s action or failure to act on and after the transfer date; and\n\n 3. By which the Authority shall accept and agree to abide by provisions that\n ensure the continued support of the education, research, patient care, and\n public service missions of MCV Hospitals, including:\n \t\t\t\ta. A requirement that the Authority continue to provide emergency and\n inpatient indigent care services on the MCV campus of the University in\n locations including downtown Richmond; and\n \t\t\t\tb. A requirement that the Authority continue to act as the primary\n teaching facility for the Virginia Commonwealth University School of Medicine\n and the Health Sciences Schools of the University.\n\nC. Any lease of hospital facilities from the University to the Authority may\ninclude a provision that requires the Authority to pay the University a rental\npayment for the hospital facilities that are leased. For those hospital\nfacilities for which rent is paid, the rent shall be at least equal to the\ngreater of:\n\n 1. The debt service accruing during the term of the lease on all outstanding\n bonds issued for the purpose of financing the acquisition, construction, or\n improvement of the hospital facilities on which rent is paid; or\n\n 2. A nominal amount determined by the parties to be necessary to prevent the\n lease from being unenforceable because of a lack of consideration.\n\nD. Any lease of hospital facilities shall include a provision that requires the\nAuthority to continue to support the education, research, patient care, and\npublic service missions of MCV Hospitals, including:\n\n 1. A requirement that the Authority continue to provide emergency and\n inpatient indigent care services on the MCV campus of the University in\n locations including downtown Richmond; and\n\n 2. A requirement that the Authority continue to act as the primary teaching\n facility for the Health Sciences Schools of the University.\n\nE. All other agencies and officers of the Commonwealth shall take such actions\nas may be necessary or desirable in the judgment of the University to permit\nsuch conveyance and the full use and enjoyment of the hospital facilities,\nincluding the transfer of property of any type held in the name of the\nCommonwealth or an instrumentality or agency of the Commonwealth but used by the\nUniversity in the operation of the hospital facilities.\n\nF. The Authority may pay to or on behalf of the University some or all of the\ncosts of the hospital facilities. The University may apply some or all of such\nproceeds to the payment or defeasance of its obligations issued to finance the\nhospital facilities, and the Authority may issue its bonds to finance or\nrefinance such payment.\n\nG. Funds held by or for the University or any of its predecessors or divisions,\nincluding funds held by the University Foundation or the MCV Foundation for the\nbenefit of MCV Hospitals or any of its predecessors for use in operating,\nmaintaining, or constructing hospital facilities, providing medical and health\nsciences education, or conducting medical or related research may be\ntransferred, in whole or in part, to the Authority if the University or any\nfoundation determines that the transfer is consistent with the intended use of\nthe funds. The University may direct in writing that all or part of the money or\nproperty representing its beneficial interest under a will, trust agreement, or\nother donative instrument be distributed to the Authority if the University\ndetermines that such direction furthers any of the original purposes of the\nwill, trust agreement, or other instrument. Such a direction shall not be\nconsidered a waiver, disclaimer, renunciation, assignment, or disposition of the\nbeneficial interest by the University. A fiduciary’s distribution to the\nAuthority pursuant to such a written direction from the University is a\ndistribution to the University for all purposes relating to the donative\ninstrument, and the fiduciary has no liability for distributing any money or\nproperty to the Authority pursuant to such a direction. Nothing in this section\nshall deprive any court of its jurisdiction to determine whether such a\ndistribution is appropriate under its cy pres powers or otherwise.\n\nH. The Authority shall not operate any hospital pursuant to this section prior\nto execution of the lease and agreement required by this section and such other\nagreements as may be necessary or convenient in the University’s judgment\nto provide for the transfer of the operations of the hospital facilities to the\nAuthority, unless and to the extent that the University approves otherwise.\n\nI. The University may assign and the Authority may accept the rights and assume\nthe obligations under any contract or other agreement of any type relating to\nfinancing or operating the hospital facilities. Upon evidence that such\nassignment and acceptance has been made, all agencies and instrumentalities of\nthe Commonwealth shall consent to such assignment and accept the substitution of\nthe Authority for the University as a party to such agreement to the extent that\nthe University’s obligations under such agreement relate to the ownership,\noperation, or financing of the hospital facilities. Indebtedness previously\nincurred by the Commonwealth, the Virginia Public Building Authority, the\nVirginia College Building Authority, and any other agency or instrumentality of\nthe Commonwealth to finance the hospital facilities may continue to remain\noutstanding after the transfer and assignment of such agreement by the\nUniversity to the Authority.\n\nJ. The transfer of the hospital facilities from the University to the Authority\ndoes not require a certificate of public need pursuant to Article 1.1 (§\n32.1-102.1 et seq.) of Chapter 4 of Title 32.1. All licenses, permits,\ncertificates of public need, or other authorizations of the Commonwealth, any\nagency of the Commonwealth, or any locality held by the University in connection\nwith the ownership or operation of the hospital facilities are transferred\nwithout further action to the Authority to the extent that the Authority\nundertakes the activity permitted by such authorizations. All agencies and\nofficers of the Commonwealth and all localities shall confirm such transfer by\nthe issuance of new or amended licenses, permits, certificates of public need,\nor other authorizations upon the request of the University and the Authority.\n\nK. If for any reason the Authority cannot replace the University as a party to\nany agreement in connection with the financing, ownership, or operation of the\nhospital facilities, the Authority and the University may require the Authority\nto act as agent for the University in carrying out its obligations under such\nagreement or receiving the benefits under such agreement, or both.\n\nHISTORY: 1996, cc. 905, 1046, \u00a7\u00a7 23-50.16:17, 23-50.16:20, 23-50.16:21,\n23-50.16:22, 23-50.16:23; 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}}