(1) The department shall be responsible for the administration and operation of state veterans nursing homes established by the Legislature, which may include contracting with a private health care provider to operate and manage each home.
(2) Each home shall:
(a) have at least an 80-bed capacity;
(b) be designed and constructed consistent with the requirements for federal funding under 38 U.S.C. Sec. 8131 et seq.; and
(c) be operated consistent with the requirements for per diem payments from the VA under 38 U.S.C. Sec. 1741 et seq.