1. Such service shall be provided in accordance with rules and regulations established by the commissioner. The commissioner's rules and regulations may relate to:

1. (a) the defects, disabilities, diseases and conditions eligible under the program and the type and extent of care that may be offered.
2. (b) qualifications of professional personnel, both medical and paramedical.
3. (c) standards of institutional care, whether in general hospitals, special hospitals, long-term care facilities, or such other special facilities, whether inpatient or outpatient, as may be needed to obtain the services required.
4. (d) limitations on the amount of professional fees, and on rates in general hospitals, special hospitals, long-term care facilities and special facilities for which reimbursement may be made under this article.
5. (e) standards and procedures for administration of programs for children with physical disabilities.

2. Sections two thousand five hundred eighty to two thousand five hundred eighty-three, inclusive, and section six hundred sixty, of this chapter, shall not apply to:

1. (a) children requiring permanent custodial care.
2. (b) children institutionalized in mental, correctional or penal institutions of the state of New York.
3. (c) children who, in the judgment of the commissioner, may not be expected to benefit from medical service.
4. (d) children whose parents or guardians object to medical services because of exclusive dependence for healing on the practice of religious tenets of any church.