The department may select one or more nursing homes within the state to operate a unit that exclusively provides geropsychiatric services . Admission to one of the nursing homes that exclusively provides geropsychiatric services for the purpose of receiving geropsychiatric services may be granted only after the state hospital has performed an evaluation of the individual being admitted which indicates the individual is in need of nursing home geropsychiatric services. If at any time the department determines that the number of approved geropsychiatric units in the state is insufficient to meet the needs, the department may select a geropsychiatric unit based on the experience, qualification, and capacity of the nursing homes that propose to provide geropsychiatric services. The state hospital may not offer geropsychiatric services through a unit set up exclusively to provide those services.