Chapter 3. Actions · Article 3. Injury to Person or Property · Last amended 2000 · Last verified July 16, 2026
In one sentenceAbolishes a hospital’s historical charitable-immunity defense against tort claims except in narrow circumstances — fully free care with no billing, or an express written charity agreement made at admission — while capping a tax-exempt, adequately insured nonprofit hospital’s exposure at its liability-insurance limits or the medical-malpractice damages cap.
Full Text of § 8.01-38
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Hospital as referred to in this section shall include any institution within the definition of hospital in § 32.1-123.
No hospital, as defined in this section, shall be immune from liability for negligence or any other tort on the ground that it is a charitable institution unless (i) such hospital renders exclusively charitable medical services for which service no bill for service is rendered to, nor any charge is ever made to the patient or (ii) the party alleging such negligence or other tort was accepted as a patient by such institution under an express written agreement executed by the hospital and delivered at the time of admission to the patient or the person admitting such patient providing that all medical services furnished such patient are to be supplied on a charitable basis without financial liability to the patient. However, notwithstanding the provisions of § 8.01-581.15 a hospital which is exempt from taxation pursuant to § 501(c) (3) of Title 26 of the United States Code (Internal Revenue Code of 1954) and which is insured against liability for negligence or other tort in an amount not less than $500,000 for each occurrence shall not be liable for damage in excess of the limits of such insurance, or in actions for medical malpractice pursuant to Chapter 21.1 (§ 8.01-581.1 et seq.) for damages in excess of the amount set forth in § 8.01-581.15.
Plain-English Summary
The section first defines “hospital” broadly, by cross-reference to the definition of that term in § 32.1-123, reaching any institution that fits within it.
It then abolishes the old rule that let a charitable hospital claim blanket immunity from negligence or other tort claims because of its charitable status alone. That immunity survives in only two narrow situations: where the hospital renders exclusively charitable medical services and never bills or charges the patient at all, or where the patient was admitted under an express written agreement, executed and delivered at the time of admission, providing that all services furnished to that patient would be supplied on a charitable basis with no financial liability to the patient.
Outside those two exceptions, a further limit applies to certain nonprofit hospitals regardless of the malpractice damages cap in § 8.01-581.15: a hospital exempt from federal taxation under Internal Revenue Code § 501(c)(3) that carries liability insurance of at least $500,000 per occurrence cannot be held liable for damages beyond the limits of that insurance, or, in medical malpractice actions under Chapter 21.1, beyond the amount set in § 8.01-581.15.
Frequently Asked Questions
Can a Virginia hospital still claim it is immune from a negligence lawsuit because it is a nonprofit or charity?
Not as a general matter. The section abolishes charitable immunity for hospitals except in two narrow situations: exclusively free care with no billing to the patient, or an express written charity agreement executed at admission.
What are the two situations where a hospital can still claim some form of charitable protection?
First, where the hospital renders only charitable medical services and never bills or charges the patient. Second, where the patient was accepted under an express written agreement, delivered at admission, providing that all services would be furnished on a charitable basis without financial liability to the patient.
Does this section limit how much a tax-exempt hospital has to pay if it loses a malpractice case?
Yes, for hospitals that qualify. A hospital exempt under Internal Revenue Code § 501(c)(3) and insured for at least $500,000 per occurrence cannot be held liable beyond its insurance limits, or beyond the amount set in the medical malpractice cap of § 8.01-581.15 for claims under Chapter 21.1.
What insurance does a hospital need to carry to get the benefit of this liability cap?
Liability insurance against negligence or other tort of not less than $500,000 for each occurrence, combined with the hospital’s federal tax exemption under § 501(c)(3).
Does “hospital” under this section include more than traditional acute-care hospitals?
The section defines “hospital” by reference to § 32.1-123’s definition, which reaches any institution falling within that broader statutory definition.
Amendment History
Code 1950, § 8-629.2; 1974, c. 552; 1976, c. 765; 1977, c. 617; 1983, c. 496; 1986, cc. 389, 454; 2000, c. 464.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
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