The department may establish new facilities for the treatment of alcoholics and drug dependent persons in areas of the state where a need exists and no private facilities are available to contract for chemical abuse or dependency treatment services. The department may contract for the treatment of alcohol and drug dependent persons by eligible vendors who meet the standards of operations established by the department. When the department chooses to contract, the department shall select eligible vendors who can provide economical and appropriate treatment for alcohol and drug dependent persons. The department shall contract for these services on the basis of the same unit costs incurred by the department in delivering like services. Each contract entered into pursuant to this section must provide that the private vendor-contractor will accept and treat each chemically dependent or chemical-abusing client referred to the vendor pursuant to the contract. As used in this section, "standards of operations" includes a determination by the department that the vendor is financially responsible and will continue to provide services throughout the contract period.
N.D.C.C. § 54-38-07