HARRY HUGHES, Governor                                     1647

13-1B-03.

(A)  PRIOR TO THE TRANSFER DATE:

(1)  THE BOARD OF PUBLIC WORKS SHALL APPROVE THE
ARTICLES OF INCORPORATION OF THE MEDICAL SYSTEM CORPORATION WHICH
SHALL REFLECT THE REQUIREMENTS OF THIS SUBTITLE; AND

(2)  THE BOARD OF REGENTS AND THE BOARD OF DIRECTORS
SHALL TAKE ALL ACTIONS NECESSARY TO CREATE AND ORGANIZE THE
MEDICAL SYSTEM CORPORATION, WHICH SHALL BE ORGANIZED FOR
CHARITABLE, SCIENTIFIC, AND EDUCATIONAL PURPOSES AND SHALL ATTAIN
AND MAINTAIN EXEMPTION FROM FEDERAL INCOME TAXATION BUT WHICH
SHALL NOT BE A STATE AGENCY, POLITICAL SUBDIVISION, PUBLIC BODY,
PUBLIC CORPORATION, OR MUNICIPAL CORPORATION AND IS NOT SUBJECT
TO ANY PROVISIONS OF LAW AFFECTING ONLY GOVERNMENTAL OR PUBLIC
ENTITIES.

(B)  ON OR AFTER THE TRANSFER DATE, THE MEDICAL SYSTEM
CORPORATION SHALL OWN, LEASE, MANAGE, AND OPERATE THE MEDICAL
SYSTEM, INCLUDING SUCH COMPONENTS OR HEALTH SERVICES AS THE BOARD
OF DIRECTORS MAY DETERMINE OR AGREE TO UNDERTAKE FROM TIME TO
TIME AND SHALL HAVE ALL POWERS OF A MARYLAND CORPORATION WHICH
ARE NOT EXPRESSLY LIMITED BY THIS SUBTITLE; SUCH POWERS INCLUDE
THE POWER TO CONVEY, LEASE, MORTGAGE, ENCUMBER, AND OTHERWISE
DEAL WITH ALL ITS ASSETS INCLUDING THE MEDICAL SYSTEM ASSETS,
WITHOUT LIMITATION OR REGARD TO THEIR SOURCE, UNLESS A GRANTOR OR
DONOR RESTRICTS THE USE OF SUCH ASSETS; PROVIDED, HOWEVER, THAT
WITHOUT IN ANY WAY LIMITING THE POWER TO MORTGAGE OR OTHERWISE
ENCUMBER SUCH PROPERTY, ANY SALE OR LEASE OF ANY LAND OR
BUILDINGS TRANSFERRED ON THE TRANSFER DATE SHALL BE APPROVED BY
THE BOARD OF REGENTS.

(C) TO THE EXTENT OF AVAILABLE RESOURCES, INCLUDING REVENUE
ALLOWED BY REGULATORY AUTHORITIES AND GRANTS FROM THE STATE OR
OTHERS, THE BOARD OF DIRECTORS SHALL CREATE AND DEVELOP SPECIALTY
CARE SERVICES APPROPRIATE TO AN ACADEMIC MEDICAL INSTITUTION TO
MEET THE NEEDS OF THE STATE AND REGION AND SHALL PROVIDE
COMPREHENSIVE SERVICES FOR PATIENT POPULATIONS NATURALLY SERVED
BY UNIVERSITY HOSPITAL.

(C) THE BOARD OF DIRECTORS:

(1) SHALL PROVIDE FOR AND MAINTAIN, CONSISTENT WITH
THE POLICIES OF THE STATE HEALTH SERVICES COST REVIEW COMMISSION
OR OTHER RELEVANT AUTHORITY, COMPREHENSIVE SERVICES FOR PATIENT
POPULATIONS NATURALLY SERVED BY UNIVERSITY HOSPITAL, INCLUDING
UNCOMPENSATED CARE AND OUTPATIENT CARE; AND

(2) SHALL MAINTAIN, CREATE, AND DEVELOP SPECIALTY
CARE SERVICES APPROPRIATE TO AN ACADEMIC MEDICAL INSTITUTION TO
MEET THE NEEDS OF THE STATE AND REGION.