The higher education department shall:
A. in cooperation with the hospitals and the New Mexico medical board, develop an intern training program to provide postdoctoral training for osteopathic interns;
B. contract with hospitals to provide intern training programs; and
C. promulgate regulations to carry out the provisions of the Osteopathic Intern Act, including program requirements, distribution of training funds and matching fund and financial accountability requirements of hospitals receiving intern training funds; provided, however, for the purposes of this subsection, "matching funds" may include the provision of in-kind services. Regulations of the department shall be filed in accordance with the State Rules Act [Chapter 14, Article 4 NMSA 1978].