(1) The department shall develop, extend, and improve services for the following purposes:

    (a) To locate a child or youth with special health care needs reported to the department pursuant to section 5721.

    (b) To provide medical, surgical, corrective, nutritional, and other services and care, including aftercare if necessary, and to provide facilities for diagnosing and hospitalizing a child or youth with special health care needs.

    (c) To the extent possible, to prevent diseases and specified medical conditions that reduce an individual's normal capacity for education and self-support.

    (2) The department shall refer a child reported to the department under section 5721 who is in need of services to the appropriate services inside or outside of the department.

    (3) The department shall carry out the program established under section 5815 for the purposes of providing medical care and treatment to improve or maintain health and enhance the quality of life for children and youth with special health care needs.