Texas Attorney General Opinion: DM-66 Page: 1 of 6
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Honorable Carmen Rivera-Worley
Val Verde County Attorney
207 East Losoya
Del Rio, Texas 78840
Opinion No. DM-66
Re: Whether a hospital district may
construct a building to lease to a private
physician and whether it may use excess
monies in its interest and sinking fund
account to finance construction of the
Dear Ms. Rivera-Worley:
You have requested our opinion regarding whether the Val Verde Hospital
District (hereinafter the "hospital district") may construct a building to lease to a
private physician. You have informed us that the hospital district currently leases a
portion of its physical plant at Val Verde Memorial Hospital (hereinafter the
"hospital") to private physicians who operate the Angelo Dialysis Center, Inc. The
private dialysis center provides renal care for patients of the hospital. The dialysis
clinic currently needs to expand its facilities, and there is no additional space
available at the hospital. The hospital district has agreed to build a separate
structure on the hospital grounds which it intends to lease to the dialysis clinic for a
period of ten years. The dialysis clinic would make monthly lease payments for the
use of the building. The hospital district also proposes to use excess funds from its
Interest and Sinking Fund Account to pay for the construction of the building.
With respect to the hospital district's plans, you ask the following:
(1) whether the hospital district may construct a building on
the hospital grounds owned by the hospital district to lease to a
private physician for the purpose of providing dialysis services;
(2) whether the hospital district may use the excess funds in
its Interest and Sinking Fund Account to finance the
construction of the building.
Office of the Attornep generall
*tate of Qexa
December 11, 1991
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Texas. Attorney-General's Office. Texas Attorney General Opinion: DM-66, text, 1991; (https://texashistory.unt.edu/ark:/67531/metapth273875/m1/1/: accessed March 18, 2019), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.