(1) Each city of the third, fourth, or fifth class and each town of the state is authorized to construct, own, and operate hospitals and to join with other cities, towns, and counties in the construction, ownership, and operation of hospitals.
(2)
(a) Beginning July 1, 2017, a hospital under Subsection (1) that owns a nursing care facility regulated under Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection, and uses an intergovernmental transfer as that term is defined in Section 26B-3-130 may not enter into a new agreement or arrangement to operate a nursing care facility in another city, town, or county without first entering into an agreement under Title 11, Chapter 13, Interlocal Cooperation Act, or other contract with the other city, town, or county to operate the nursing care facility.
(b) Subsection (2)(a) only applies to a city or town described in Subsection (1).