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The Northern Apache County Special Health Care District (NACSHCD) was established in 1995 pursuant to A.R.S. Title 48-5501 as an independent political subdivision that exists separately from state or county government. The rationale for its creation was to provide a vehicle for a development of health care service in Northern Apache County, a medically underserved, remote part of Arizona.

The registered voters residing within the District approved its creation and its continuing existence by referendum four times since 1995. Additionally, these voters approved the levy of a secondary property tax to support District operations. 

The District is not an agency of the State, County, Tribal or the Federal government. The health care services which it provides are not funded by general State, County or Federal government, but rather by a combination of secondary property taxes, fees for services and contributions. On December 3, 2010, the District was reclassified as a public charity described in Section 509(a)(1) and 170(b)(1)(A)(vi) of the Internal Revenue Code because the District demonstrated that more than one-third of its total support came from diverse public sources and that the services which it provides are responsive to general public needs. 

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