(a) This subchapter applies only to a hospital, hospital district, or authority created and operated under Article IX, Texas Constitution, under a special law, or under this title that is located in:
(1) a county with a population of 35,000 or less;
(2) those portions of extended municipalities that the federal census bureau has determined to be rural; or
(3) an area that is not delineated as an urbanized area by the federal census bureau.
(b) A hospital, hospital district, or authority covered by this subchapter may:
(1) construct, acquire, own, operate, enlarge, improve, furnish, or equip one or more of the following types of facilities or services for the care of the elderly or disabled:
(A) a nursing home or similar long-term care facility;
(B) elderly housing;
(C) assisted living;
(D) home health;
(E) personal care;
(F) special care;
(G) continuing care; or
(H) durable medical equipment;
(2) lease or enter into an operations or management agreement relating to all or part of a facility or service described in Subdivision (1) that is owned by the hospital district or authority;
(3) close, transfer, sell, or otherwise convey all or part of a facility and discontinue services; and
(4) issue revenue bonds and other notes to acquire, construct, or improve a facility for the care of the elderly or disabled or to implement the delivery of a service for the care of the elderly or disabled.
(c) For the purpose of this section, a facility or service created under Subsection (b) is considered to be a hospital project under Chapter 223.
(d) This section does not authorize a hospital, hospital district, or authority to issue revenue bonds or other notes in accordance with this chapter to construct, acquire, own, enlarge, improve, furnish, or equip a facility or service listed in Subsection (b)(1) if a private provider of the facility or service is available and accessible in the service area of the hospital, hospital district, or authority.