Section 78. Where county institutions are utilized for providing such care and treatment, the department is authorized to enter into a contract with the county commissioners of the respective counties upon terms satisfactory to the contracting parties under which the county institutions will admit tuberculous patients and give them care and treatment in compliance with the terms of the contract and the regulations of the department in regard thereto. Such contracts shall be made for periods of not longer than two years and may be renewed upon such terms as are satisfactory to the parties. Should the department determine that a particular county institution will no longer be utilized for such tuberculosis care and treatment, it must give written notice of such intention to the county commissioners at least one year in advance of such discontinuance. If such notice is given and would take effect after the expiration of an existing contract, the terms of the existing contract shall remain in effect until the end of the notice period unless a new contract is entered into by the parties. Under the terms of contracts entered into under this section the department shall pay the institutions so utilized for all general health supplies, care, services and accommodations furnished each patient under the contract, the rates established by the executive office of health and human services or a governmental unit designated by the executive office.

The department is hereby authorized to adopt regulations concerning the care and treatment of tuberculous patients in hospitals under such contract arrangements. If a hospital or sanatorium is not in compliance with these regulations the department may refuse to utilize it for such contract care.