NC S318

Integrates state-operated Alcohol and Drug Treatment Centers (ADATCs) into the array of publicly funded substance abuse services 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 all direct state appropriations for ADATCs effective July 1, 2019, and reallocates this funding to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services for distribution to LME/MCOs based on catchment area population.

Requires LME/MCOs to pay a phased percentage of per bed day costs during transition: 25% in fiscal year 2016-2017, 50% in 2017-2018, and 75% in 2018-2019, with full cost coverage required after transition ends.

Establishes a uniform prior authorization process for ADATCs to admit individuals and requires LME/MCOs to submit transition plans by February 1, 2016, describing how they will use reallocated ADATC funds to build capacity and reduce gaps in substance abuse services.

Requires DHHS to develop a performance management plan by January 15, 2016, to strengthen the state's publicly funded substance abuse services through long-term outcome measures and improved data tracking systems.