HLS 24RS-492 ENGROSSED 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; to require a report of findings 9 and recommendations; and to provide for related matters. 10Be it enacted by the Legislature of Louisiana: 11 Section 1. R.S. 40:2115.1 is hereby enacted to read as follows: 12 ยง2115.1. Review of standards for licensed psychiatric hospitals and residential 13 substance abuse facilities 14 A. The legislature hereby declares that promoting efficiency and productivity 15 of psychiatric hospitals and residential substance abuse facilities within the 16 healthcare system is vital to the improvement and overall welfare of the residents in 17 this state. 18 B. To achieve such promotion, the legislature shall look to the Louisiana 19 Department of Health to evaluate the current standards for psychiatric hospitals and 20 residential substance abuse facilities and to make recommendations to the legislature 21 for new or revised standards to improve health outcomes and to provide for increased 22 accountability. Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 24RS-492 ENGROSSED HB NO. 868 1 C. Further, the legislature shall look to the Louisiana Department of Health 2 to explore potential value-based financial incentives for Medicaid-enrolled 3 psychiatric hospitals that sustain or exceed quality of care criteria. 4 D. For purposes of this Section, the following definitions have the meanings 5 ascribed to them: 6 (1) "Department" means the Louisiana Department of Health. 7 (2) "Psychiatric hospital" means any freestanding inpatient psychiatric 8 hospital licensed by the department. 9 (3) "Residential substance abuse facility" means any licensed behavioral 10 health service provider with a residential substance use disorder treatment facility 11 module. 12 E. The department shall conduct a review and evaluation of the standards for 13 psychiatric hospitals and residential substance abuse facilities in this state and submit 14 a report of its findings to the House and Senate committees on health and welfare. 15 The report shall contain recommendations for new or revised standards to improve 16 health outcomes and provide increased accountability, and also an evaluation and 17 recommendations of accreditation requirements for psychiatric hospitals and 18 residential substance abuse facilities in this state. 19 F. The department shall explore potential value-based financial incentives 20 for Medicaid-enrolled psychiatric hospitals and residential substance abuse facilities 21 that sustain or exceed quality of care criteria. Data, information, and 22 recommendations on such potential value-based financial incentives and quality of 23 care criteria shall be included in the report required by Subsection E of this Section. 24 G. The department may consult with any agency, department, board, 25 commission, accreditation organization, or other healthcare group or association to 26 conduct its review and evaluation and for preparation of its report. 27 Section 2. The report required by R.S. 40:2115.1 as enacted by Section 1 of this Act 28shall be due on or before March 31, 2025. Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 24RS-492 ENGROSSED HB NO. 868 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 Engrossed 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 an 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 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) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Health and Welfare to the original bill: 1. Redefine "residential substance abuse facility" for the purposes of proposed law. 2. Make technical corrections. Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.