(a) With the approval of the commissioners court, the board may, in performing its powers under § 281.050, contract or cooperate with:
(1) the federal government;
(2) this state;
(3) another governmental entity; or
(4) a privately owned or operated hospital.
(b) With the approval of the commissioners court, the board may contract with:
(1) a county for care and treatment of the county’s sick, diseased, or injured persons; and
(2) this state or the federal government for care and treatment of sick, diseased, or injured persons for whom the state or federal government is responsible.

(c) The board shall encourage and promote participation by all sectors of the business community, including small businesses and businesses owned by members of a minority group or by women, in the process by which the district enters into contracts. The board shall develop a plan for the district to identify and remove barriers that do not have a definite or objective relationship to quality or competence and that unfairly discriminate against small businesses and businesses owned by members of a minority or by women. These barriers may include contracting procedures and contract specifications or conditions.