Where, at the time this section goes into effect, a city or town is maintaining a tuberculosis hospital and such hospital is not utilized by the commonwealth for the care and treatment of tuberculosis patients under contractual arrangements under section seventy-seven, and where such hospital is deemed by the board or officer in charge as no longer necessary for the care of tuberculous patients, the hospital may after being licensed under section seventy-one be converted into a chronic disease hospital or home for the care and treatment of aging persons, or the institution may be liquidated in accordance with law. The board or officer in charge of such institution may adopt such rules and regulations concerning the operation of the institution as a chronic disease hospital or home for the aging and concerning admission of patients thereto as deemed necessary; provided, however, that the rate or rates in such a chronic disease hospital or home for the aging for all general health supplies, care, services and accommodations shall be established by the executive office of health and human services or a governmental unit designated by the executive office.
Mass. Gen. Laws ch. 111, § 88