1.  A board of county commissioners may create a hospital district in an area where no hospital district exists for the sole purpose of contracting with a public agency or a privately owned hospital to provide the services of a hospital to the residents of the district. If such a contract is executed, the board of trustees:

(a) Shall prepare a budget pursuant to NRS 450.650;

(b) Shall levy a tax pursuant to NRS 450.660;

(c) May accept donations pursuant to NRS 450.690;

(d) May determine medical indigency pursuant to NRS 450.700; and

(e) May borrow money and incur or assume indebtedness pursuant to NRS 450.665.

2.  A board of county commissioners shall not create a hospital district pursuant to this section unless it determines that:

(a) The proposed hospital district constitutes a geographic area of the county that is not served by adequate medical services;

(b) There is no county hospital or the county hospital is not capable of providing the necessary services; and

(c) The proposal is approved by a majority of the votes cast on the issue by persons in the proposed hospital district.

3.  If a hospital district is created pursuant to this section, the board of county commissioners may be designated by ordinance as, ex officio, the board of trustees of the hospital district, notwithstanding the provisions of subsection 3 of NRS 450.620.