(1) The Superintendent of Public Instruction, in cooperation with the hospital authorities, shall be responsible for payment of the cost and oversight of the educational programs for children through 21 years of age in the following institutions:
(a) State-operated hospitals;
(b) The Oregon Health and Science University hospitals and clinics; and
(c) Private hospitals not including psychiatric facilities which:
(A) Have the capacity to admit patients from throughout the state;
(B) Provide specialized intensive treatment for children with severe, low-incidence types of disabling conditions; and
(C) Admit children who can expect to be hospitalized for extended periods of time or rehospitalized frequently.
(2) The superintendent shall be responsible for the payment of the cost of the education by contract with the school district in which the state-operated hospital, the Oregon Health and Science University hospital or clinic or the private hospital is located. The hospital shall be responsible for the costs of transportation, care, treatment and medical expenses. The payments may be made to the school district, or at the discretion of the school district, to the district providing the education, as set forth in subsection (3) of this section, from the funds appropriated for the purpose.
(3) The school district in which the state-operated hospital, the Oregon Health and Science University hospital or clinic or the private hospital is located shall be responsible for providing the education directly or through an adjacent school district or through the education service district in which the program is located or one contiguous thereto.
(4) The superintendent shall make the final determinations concerning the eligibility of hospitals to receive state funding under this section. [1959 c.510 §10 (343.211 to 343.291 and 343.990(2) enacted in lieu of 343.234 to 343.304 as compiled in 1957 Replacement Part); 1965 c.100 §402; 1975 c.621 §8; 1975 c.693 §2; 1979 c.737 §1; 1985 c.555 §3; 1989 c.224 §54; 1989 c.491 §39; 1989 c.875 §2; 1995 c.162 §69]