NC H377

Requires an assessment to ensure appropriateness of placement before children can be admitted to Level III or Level IV mental health residential facilities under Medicaid.

Extends the length of stay limitation for residential placements from 120 days to 180 days, with exceptions requiring independent psychiatric or psychological assessment and Child and Family Team review.

Clarifies that Local Management Entities (LMEs) must designate individuals to sign discharge plans within 24 hours of receipt, and that authorization approval is not conditional on the system of care coordinator's signature.

Requires submission of a discharge plan for Level III or Level IV service authorization to be considered complete, with incomplete submissions returned as unable to process.

Establishes enforcement mechanisms including payment withholding and potential Medicaid program exclusion for providers that fail to comply with notification, recipient transition planning, or record maintenance requirements.