Municipality may establish and maintain dispensaries and hospitals :

A municipality may provide for the use of the inhabitants of the municipality dispensaries, hospitals (allopathic or otherwise) or temporary places for the reception of the sick and for that purpose may—

1. (a) itself build such dispensaries, hospitals or places of reception; or
2. (b) contract for the use of any such dispensary, hospitals or place of reception or of any part thereof; or
3. (c) enter into any agreement with any person having the management of any hospital for the reception of sick inhabitants of the municipality on payment or otherwise as may be agreed upon.