S.D. Codified Laws § 34-9-5
If a first or second class municipality within a county which has no established county hospital makes provisions to construct, equip, and operate a public hospital having a capacity of not less than twenty patients and the board of county commissioners determines that the operation of a hospital will be beneficial to the public and that a necessity exists for it and, in order to provide to the public a hospital facility, it will be necessary for the county to provide financial aid to the municipality for the cost to construct a hospital building, it may, by appropriate resolution, declare a public necessity to exist and that it is desirable that the county render financial aid to the municipality in an amount not to exceed one-half of the cost to construct a hospital building and that the funds may be made available:
SDCL 34-9-5