(a) Except as provided by Subsection (b), this chapter applies only to:
(1) a hospital district that is not participating in a health care provider participation program authorized by another chapter of this subtitle; and
(2) a county or municipality that:
(A) is not participating in a health care provider participation program authorized by another chapter of this subtitle; and
(B) is not served by a hospital district or a public hospital.
(b) This chapter does not apply to a municipality that is located in a county described by Section 292D.002.