(1) After the effective date of the rules required under section 21563, a hospital with fewer than 100 licensed beds located in a nonurbanized area that is either licensed on or before the effective date of this section or is licensed after the effective date of this section and is located in a county that did not have a hospital on the effective date of this section may apply to the department for designation as a rural community hospital.

    (2) The term “rural community hospital” shall not be used to describe or refer to a health facility or agency unless the health facility or agency is designated as a rural community hospital by the department.

    (3) As used in this section, “nonurbanized area” means that term as defined in section 21551.