1. (a) A member of a governing board shall, based on facts then known to the member, discharge the member's duties as follows:

   1. (1) In good faith.
   2. (2) With the care an ordinarily prudent person in a like position would exercise under similar circumstances.
   3. (3) In a manner the member reasonably believes to be in the best interests of the hospital.

2. (b) In discharging the member's duties, a member may rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by one (1) of the following:

   1. (1) A person whom the member reasonably believes to be reliable and competent in the matters presented.
   2. (2) Legal counsel, public accountants, or other persons as to matters the member reasonably believes are within the person's professional or expert competence.
3. (c) A member is not acting in good faith if the member has knowledge concerning a matter in question that makes reliance otherwise permitted by subsection (b) unwarranted.

As added by P.L.125-2006, SEC.4.