Sec. 2. The department shall provide for the care and treatment of every confined offender who is determined to be mentally ill by a psychiatrist employed or retained by the department. To provide that care and treatment, the department may:
(1) establish and operate its own mental health facilities and programs;
(2) transfer offenders to the division of mental health and addiction, subject to the approval of the director of the division of mental health and addiction; or
(3) contract with any city, county, state, or federal authority or with other public or private organizations for the provision of care and treatment.