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            A. The commission shall enter into a formal written employment agreement with a hospital director, hereafter referred to as “director”, who has had experience in the field of hospital administration and is familiar with the principles and methods of hospital and institutional care, and the hospital may enter into a formal written employment agreement with any hospital executive. For purposes of this Section, “hospital executive” includes but is not limited to any senior member of management such as vice president, assistant administrator, or department director. The director and any hospital executive shall be full-time employees of the district or of the hospital management firm. The director shall receive a salary fixed by the commission.

            B. If the director and commission enter into a formal written employment agreement, notwithstanding any law to the contrary, such agreement shall bind both parties to its terms. If a hospital executive and hospital, upon the authority of the director, enter into a formal written employment agreement, notwithstanding any law to the contrary, such agreement shall bind both parties to its terms. Such written agreements shall provide for a fixed term of employment, specify the director’s or hospital executive’s duties, and be renewable for an additional term or terms at the pleasure of the commission or hospital director, respectively. In the absence of a formal written employment agreement, the director shall serve at the pleasure of the commission and the hospital executive shall serve at the pleasure of the director.

            C. If a director is found incompetent, inefficient, or unworthy during the term of a written employment agreement, he shall be removable for such cause by a majority vote of the commission at any regular meeting for which the removal appears on the agenda or any special meeting after due notice. The written employment agreement shall also specify that the commission shall give the director official warning and a reasonable opportunity to correct the indicated deficiencies prior to the commission’s termination of the agreement.

            Acts 1950, No. 420, §6. Amended by Acts 1979, No. 726, §1; Acts 1999, No. 1112, §1; Acts 2017, No. 161, §1; Acts 2018, No. 206, §5.