(1) Any municipality through its mayor and governing board is authorized to enter into contracts and guarantee the payment, and to make payment of the expense of maintaining a hospital for a period of five (5) years; provided, that any person will agree to defray the expense of building and equipping the hospital within the limits of the city for its use.
(2) Any county is empowered through its county legislative body at its regular meeting to enter into contracts and guarantee, and to make payment of, the expense of maintaining a hospital for a period not exceeding five (5) years; provided, that any person will agree to defray the expense of building and equipping such hospital within the county for its use.