IL SB0391

Requires screening and assessment of children before Medicaid-funded inpatient psychiatric hospital admission to determine appropriateness of outpatient services and establish payment standards.

Transfers Individual Care Grant program administration from Department of Human Services to Department of Healthcare and Family Services, with all existing rules, personnel, funds, and records transferred within 6 months.

Restructures Family Support Program to serve youth (under 18), emerging adults (18-20), and transition-age adults (21-25) with serious mental illness or emotional disturbance, with eligibility triggered by third inpatient psychiatric admission within 12 months.

Requires hospitals to notify families of Family Support Program services upon second psychiatric admission and prohibits coaching parents to relinquish custody solely to access mental health treatment; establishes psychiatric lockout as "last resort" option.

Mandates development of specialized therapeutic residential treatment beds for high-acuity youth (max 12% of annual funds) and supportive housing model for emerging/transition-age adults (max 25% of annual funds), with annual reporting to General Assembly on outcomes and enrollment.