(a) The Director of the Arkansas State Hospital is given power and authority to make contracts with the United States Department of Veterans Affairs or any other federal agency for the hospitalization of any patients who are veterans and eligible for hospitalization by the United States Government on such terms of payment to the Arkansas State Hospital as established by the Department of Human Services State Institutional System Board.
(b) The director is also authorized and empowered to ratify and confirm any contract, either express or implied, which may have been made in the past for the hospitalization of veterans. The director is authorized to receive and collect any funds that may be due from the United States Government for hospitalization.