HLS 24RS-492 ORIGINAL 2024 Regular Session HOUSE BILL NO. 868 BY REPRESENTATIVE EGAN MENTAL HEALTH: Provides relative to standards for psychiatric hospitals and residential substance abuse facilities 1 AN ACT 2To enact R.S. 40:2115.1, relative to standards for psychiatric hospitals and residential 3 substance abuse facilities; to provide for a legislative declaration; to improve 4 standards of quality; to require a review by the Louisiana Department of Health of 5 current standards for psychiatric hospitals and residential substance abuse facilities; 6 to provide for definitions; to require the submission of a report to the legislative 7 committees on health and welfare; to require the department to review value-based 8 financial incentives for certain psychiatric hospitals and residential substance abuse 9 facilities; to require a report of findings and recommendations; and to provide for 10 related matters. 11Be it enacted by the Legislature of Louisiana: 12 Section 1. R.S. 40:2115.1 is hereby enacted to read as follows: 13 ยง2115.1. Review of standards for licensed psychiatric hospitals and residential 14 substance abuse facilities 15 A. The legislature hereby declares that promoting efficiency and productivity 16 of psychiatric hospitals and residential substance abuse facilities within the 17 healthcare system is vital to the improvement and overall welfare of the residents in 18 this state. 19 B. To achieve such promotion, the legislature shall look to the Louisiana 20 Department of Health to evaluate the current standards for psychiatric hospitals and Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 24RS-492 ORIGINAL HB NO. 868 1 residential substance abuse facilities and to make recommendations to the legislature 2 for new or revised standards to improve health outcomes and to provide for increased 3 accountability. Further, the legislature shall look to the Louisiana Department of 4 Health to explore potential value-based financial incentives for Medicaid-enrolled 5 psychiatric hospitals and residential substance abuse facilities that sustain or exceed 6 quality of care criteria. 7 C. For purposes of this Section, the following definitions have the meanings 8 ascribed to them: 9 (1) "Department" means the Louisiana Department of Health. 10 (2) "Psychiatric hospital" means any freestanding inpatient psychiatric 11 hospital licensed by the department. 12 (3) "Residential substance abuse facility" means any freestanding substance 13 abuse facility that is certified to provide such services. 14 D. The department shall conduct a review and evaluation of the standards for 15 psychiatric hospitals and residential substance abuse facilities in this state and submit 16 a report of its findings to the House and Senate committees on health and welfare. 17 The report shall contain recommendations for new or revised standards to improve 18 health outcomes and provide increased accountability, an evaluation, and 19 recommendations of accreditation requirements for psychiatric hospitals and 20 residential substance abuse facilities in this state. 21 E. The department shall explore potential value-based financial incentives 22 for Medicaid-enrolled psychiatric hospitals and residential substance abuse facilities 23 that sustain or exceed quality of care criteria. Data, information, and 24 recommendations on such potential value-based financial incentives and quality of 25 care criteria shall be included in the report required by Subsection D of this Section. 26 F. The department may consult with any agency, department, board, 27 commission, accreditation organization, or other healthcare group or association to 28 conduct its review and evaluation and for preparation of its report. Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 24RS-492 ORIGINAL HB NO. 868 1 Section 2. The report required by R.S. 40:2115.1 as enacted by Section 1 of this Act 2shall be due on or before March 31, 2025. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 868 Original 2024 Regular Session Egan Abstract: Requires the La. Dept. of Health (LDH) to conduct a review and evaluation of the standards for psychiatric hospitals and residential substance abuse facilities and submit a report of its findings. Proposed law declares that promoting efficiency and productivity of psychiatric hospitals and residential substance abuse facilities within the healthcare system is vital to the improvement and overall welfare of the residents in Louisiana. Proposed law defines "department", "psychiatric hospital", and "residential substance abuse facility". Proposed law requires LDH to conduct a review and evaluation of the standards for psychiatric hospitals and residential substance abuse facilities and to submit a report of its findings. Proposed law further requires certain content for the report, which includes but is not limited to recommendations for new or revised standards to improve health outcomes, increase accountability, and recommend requirements for accreditation of psychiatric hospitals and residential substance abuse facilities. Proposed law requires LDH to submit its report and recommendations to the House and Senate committees on health and welfare by March 31, 2025. Proposed law requires LDH to explore potential value-based financial incentives for Medicaid-enrolled psychiatric hospitals and residential substance abuse facilities that sustain or exceed quality of care criteria. Proposed law allows LDH to consult with any agency, department, board, commission, accreditation organization, or other healthcare group or association to conduct its review and prepare its report (Adds R.S. 40:2115.1) Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.