(a) A health services district shall:
(1) provide health care services to indigent residents of the district;
(2) manage the funds contributed to the district by each county or hospital district that contracts with the district; and
(3) plan and coordinate with public and private health care providers and entities for the long-term provision of health care services to residents of the district.
(b) A health services district may:
(1) provide health care services on a sliding-fee scale to residents of the district who do not meet the basic income and resources requirements established under Sections 61.006 and 61.008 to be eligible for assistance under Chapter 61 but who are unable to pay for the full cost of health care services; and
(2) assume responsibility for management and operation of the land, buildings, improvements, equipment, and other assets that are acquired by the district or for which the district agrees to assume responsibility under the terms of the contract.

(c) A health services district may not:
(1) establish, conduct, or maintain an institution as defined by § 242.002; or
(2) establish or operate a personal care facility as defined by § 247.002.