Section 7. The conveyance of real and personal property shall be conditioned upon compliance by Ashland Area Community Hospital, Incorporated, for a period of five years from the date of conveyance with the following terms and conditions which shall appear in the documents of conveyance:
(1) Ashland Area Community Hospital, Incorporated, shall provide uncompensated care, including indigent care, in reasonable amounts to persons unable to pay the costs thereof and shall comply with Federal and State law respecting its qualification for tax-exempt status and its obligations to furnish charity care services.
(2) Ashland Area Community Hospital, Incorporated, shall prohibit any of its directors from serving more than two full consecutive terms of three years as a director, and no director of Ashland Area Community Hospital, Incorporated, shall serve more than eight consecutive years as a director, including shortened terms as an initial director or to fill a vacancy. Any director serving such consecutive years or terms shall be ineligible to serve as a director until at least one year following the expiration of such director's most recent term of service.
(3) Ashland Area Community Hospital, Incorporated, shall create and implement a mechanism and procedure for receiving suggestions from the communities presently served by Ashland State General Hospital concerning the continuing composition of the Board of Directors of Ashland Area Community Hospital, Incorporated. Such mechanism and procedure shall be designed and utilized in a manner consistent with the objectives of insuring that the future operations of the facilities presently operated as Ashland State General Hospital and the composition of the Board of Directors of Ashland Area Community Hospital, Incorporated, shall reflect a broad cross section of the views and interests of the communities served by Ashland State General Hospital.
(4) Ashland Area Community Hospital, Incorporated, shall require that its board of directors be comprised of at least 11 directors.
(5) Ashland Area Community Hospital, Incorporated, shall comply with the applicable provisions of Federal and State law respecting its qualification for tax-exempt status and the prohibition against any part of its net earnings inuring to the benefit of private individuals, including, without limitation, its directors, officers, employees or members of their immediately families.
(6) Ashland Area Community Hospital, Incorporated, shall comply with Federal and State law respecting its qualification as a nonprofit corporation and its operation of a hospital or other health care facility and regarding transactions in which any directors, officers, employees or a member of their immediate families may derive a material financial interest, and, furthermore, Ashland Area Community Hospital, Incorporated, shall provide for and utilize a procedure requiring the disclosure and monitoring of such interests and transactions to ensure compliance with these provisions.
(7) Ashland Area Community Hospital, Incorporated, shall comply with the conditions in this section for a period of five years. If Ashland Area Community Hospital, Incorporated, fails to comply with the conditions in this section, the Secretary of Public Welfare shall, within the five-year period, notify Ashland Area Community Hospital, Incorporated, of this failure in writing specifying the noncompliance, and Ashland Area Community Hospital, Incorporated, shall have 60 days to cure the noncompliance. If the noncompliance is not cured within 60 days, the Commonwealth may exercise a right of reentry.
Compiler's Note: The Secretary of Public Welfare, referred to in this section, was redesignated as the Secretary of Human Services by Act 132 of 2014.