(1) Following the creation of the authority and on the transfer date under this part 5, and except for the power of the regents to appoint members of the board of directors, the regents shall have no further control over the operation of university hospital but shall be authorized to:

(a) At such future date as the regents shall determine it to be necessary and for the purpose of preserving the certification of the university of Colorado psychiatric hospital and eligibility for federal funds thereunder, transfer some or all of the assets of the university of Colorado psychiatric hospital to the authority operating university hospital pursuant to the provisions of this article; except that the director of the university of Colorado psychiatric hospital shall at all times be a professor of psychiatry in the school of medicine of the university of Colorado. The transfer of assets of the university of Colorado psychiatric hospital shall be conditional upon the provision of retirement benefits and the protection of accrued sick leave and annual leave under sections 23-21-507 and 23-21-508 for state employees of the psychiatric hospital who become employees of the authority.

(b) Notwithstanding the provisions of the "Procurement Code", articles 101 through 112 of title 24, C.R.S., enter into contracts with the authority for the provision of goods, services, and facilities in support of programs of the university of Colorado; except that moneys paid to either the regents or the authority under said contracts shall not exceed a reasonable estimate of actual cost of the goods, services, or facilities.

(c) In the regents' discretion, provide the authority and its employees with medical malpractice liability coverage from any self-insurance trust fund established pursuant to section 24-10-115, C.R.S., or any other provision of state law, or through such other fund or mechanism which may be available for the provision of such coverage by the regents to university of Colorado employees, at such cost as would be actuarially sound.