NC H923

Establishes a three-year pilot program allowing rural hospitals to convert unused acute care beds into licensed inpatient behavioral health beds for mental health, substance abuse, and developmental disability services without certificate of need review.

Limits conversions to a maximum of 50 beds per region in two separate regions of the State, with at least one region located in a rural area surrounding Wake County; selected hospitals must participate in the existing statewide telepsychiatry program.

Requires participating hospitals to reserve at least 50% of converted beds for Department purchases under the State-administered three-way contract and referrals from local management entities/managed care organizations for Medicaid recipients or indigent individuals.

Directs the Department of Health and Human Services to conduct monitoring visits at least every six months, investigate complaints, and report annually to the Program Evaluation Division and Fiscal Research Division on program outcomes and performance metrics.

Appropriates net proceeds from the sale of Dorothea Dix Hospital to the Mental Health Trust Fund and dedicates sufficient funds to pay for renovation and building costs associated with bed conversions under the pilot program for fiscal year 2015-2016; program expires June 30, 2018.