The commission shall waive for a nursing facility a restriction imposed by state law on the authority to contract under the state Medicaid program for nursing facility beds based on the percentage of beds that are occupied in a geographical area if the facility:
(1) is affiliated with a medical school operated by the state;
(2) is participating in a research program for the care and treatment of persons with Alzheimer’s disease; and
(3) is designed to separate and treat Alzheimer’s disease by stage or functional level.