(a) The executive commissioner shall adopt rules relating to the department’s determination of whether program services are to be provided through a network of approved providers, directly by the department, or by a combination of the department and approved providers as prescribed by this section.
(b) The department shall provide services only as prescribed by department rule.

(c) The department may provide primary health care services directly to eligible individuals to the extent that the department determines that existing private or public providers or other resources in the service area are unavailable or unable to provide those services. In making that determination, the department shall:
(1) initially determine the proposed need for services in the service area;
(2) notify existing private and public providers and other resources in the service area of the department’s initial determination of need and the services the department proposes to provide directly to eligible individuals;
(3) provide existing private and public providers and other resources in the service area a reasonable opportunity to comment on the department’s initial determination of need and the availability and ability of existing private or public providers or other resources in the service area to satisfy the need;
(4) provide existing private and public providers and other resources in the service area a reasonable opportunity to obtain approval as providers under the program; and
(5) eliminate, reduce, or otherwise modify the proposed scope or type of services the department proposes to provide directly to the extent that those services may be provided by existing private or public providers or other resources in the service area that meet the executive commissioner’s criteria for approval as providers.
(d) The department shall maintain a continuing review of the services it provides directly to the eligible individuals who participate in the program. At least annually, the department shall review and determine the continued need for the services it provides directly in each service area, in accordance with the methods and procedures used to make the initial determination as prescribed by this section.
(e) If after a review the department determines that a private or public provider or other resource is available to provide services and has been approved as a provider, the department shall, immediately after approving the provider, eliminate, reduce, or modify the scope and type of services the department provides directly to the extent the private or public provider or other resource is available and able to provide the service.