After the acquisition of Harrison Memorial Hospital, the department of social and health services is authorized to enter into contracts for the repair or remodeling of the hospital to the extent they are necessary and reasonable, in order to establish a multi-use facility for persons with mental or physical disabilities or mental illness. The secretary of the department of social and health services is authorized to determine the most feasible and desirable use of the facility and to operate the facility in the manner he or she deems most beneficial to persons with mental or physical disabilities or mental illness, and is authorized, but not limited to programs for outpatient, diagnostic and referral, day care, vocational and educational services to the community which he or she determines are in the best interest of the state.