The board of trustees may contract with a public agency or a privately owned hospital to provide the services of a hospital to the residents of the hospital district if it determines that: 1. There is a need to provide medical services to the residents of the district which are not being provided by the district; or 2. It is less costly or more efficient to provide the services of a hospital to the residents of the district by contracting with a public agency or a privately owned hospital.
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