The Governor is authorized to enter into compacts or agreements with one (1) or more public-supported hospitals located within a reasonable distance from the Arkansas border which are used as teaching hospitals for state-supported medical schools in adjoining states. Under the terms of these agreements, the public-supported teaching hospitals shall agree to furnish medical and hospital services for indigent citizens of this state where payment is not available through public welfare or other programs and, upon the payment for these services, from the appropriation provided for by law, of an amount required to reasonably reimburse the public-supported hospital for the costs of these services.