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<br />e For example, a loan from the authority could be used to construct an office <br /> to hold the records of an in-patient medical facility, but could not be used <br /> to construct offices for physicians. Mr. Wong said it is possible that <br /> businesses providing services similar to Sacred Heart's nonacute care <br /> services could be at a competitive disadvantage. <br /> Mr. Wong said the ordinance can explicitly restrict the type of projects that <br /> can be financed through the authority, or it may be relatively broad and <br /> responsibility for limiting projects can be left to the Board of Directors. <br /> Ms. Ehrman asked if terms such as acute care and in-patient are statutorily <br /> defined. Mr. Gary said these terms are not defined within the statute that <br /> gives the council authority to create a hospital authority. He recommended <br /> that the council define these terms in the ordinance. <br /> Mr. Holmer favored drafting the ordinance to create a hospital authority now, <br /> but reserving for future decision which organizations would be eligible to <br /> seek financing from the hospital authority. He thought the Board of <br /> Directors should be responsible for evaluating whether an applicant is <br /> eligible for bonding from the hospital authority. Mr. Bennett and Mr. Boles <br /> disagreed with Mr. Holmer. They felt that if a hospital authority is formed, <br /> there should be a clear intent of its use from the outset. <br /> Ms. Ehrman said the first sentence of the purpose section disturbs her <br /> because it does not address the cost of the care; the purpose of establishing <br /> the hospital authority is so that medical businesses are able to provide more <br />e affordable health care. Ms. Ehrman suggested that the sentence be amended to <br /> read, "in order to provide the people of Eugene with access to adequate and <br /> affordable medical care and hospital facilities. II <br /> Mr. Bennett said he was comfortable with the purpose section as drafted. Mr. <br /> Boles shared Ms. Ehrman's concerns about the purpose section. He suggested <br /> that the words "not-for-profit health care" be substituted for the phrase <br /> "acute care in-patient hospital." Mr. Boles said public benefit is the <br /> primary reason for forming a hospital authority and the council should not <br /> restrict the potential applicants for financing as long as they are fiscally <br /> responsible. <br /> Mr. Boles suggested that the council break its discussion into two pieces-- <br /> Who can come before the authority to request bonds, and for what purpose may <br /> they request bonds? He said his suggested change to the ordinance addresses <br /> only the first question, broadening the charge to the authority to accept <br /> bonding requests from any nonprofit health care provider who wishes to <br /> provide medical projects for the community. Mr. Boles said this is the only <br /> way that the hospital authority can effectively serve the residents of <br /> Eugene. <br /> Ms. Schue voiced concern that the establishment of a hospital authority would <br /> give Sacred Heart General Hospital a competitive advantage that would <br /> eventually put independent medical facilities out of business. She said this <br /> is of particular concern since Sacred Heart General Hospital does not permit <br />e MINUTES--Eugene City Council September 20, 1989 Page 3 <br />