NC H119

Integrates state-operated Alcohol and Drug Treatment Centers (ADATCs) into the publicly funded substance abuse services system managed by Local Management Entities/Managed Care Organizations (LME/MCOs) over a three-year transition period from July 1, 2016 to June 30, 2019.

Terminates direct state appropriations for ADATCs effective July 1, 2019 and reallocates these funds to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services for distribution to LME/MCOs based on proportional catchment area population.

Establishes a phased payment structure where LME/MCOs pay 25% of per bed day costs in fiscal year 2016-2017, 50% in 2017-2018, and 75% in 2018-2019, reaching 100% cost coverage by 2019-2020.

Requires DHHS to submit a transition business plan by April 1, 2016 that includes demand projections, service availability, operational adjustment procedures, rate methodology, and a uniform prior authorization process for ADATC admissions.

Mandates development of a performance management plan by January 15, 2016 to strengthen outcome tracking for publicly funded substance abuse services using long-term outcome measures and integrated data from multiple state agencies.