§2115.1. Review of standards for licensed psychiatric hospitals and residential substance abuse facilities

            A. The legislature hereby 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 this state.

            B. The Louisiana Department of Health shall:

            (1) Evaluate the current standards for psychiatric hospitals and residential substance abuse facilities and make recommendations to the legislature for new or revised standards to improve health outcomes and to provide for increased accountability.

            (2) Explore potential value-based financial incentives for Medicaid-enrolled psychiatric hospitals that sustain or exceed quality of care criteria.

            (3) Conduct a review and evaluation of the standards for psychiatric hospitals and residential substance abuse facilities in this state and submit a report of its findings to the House and Senate committees on health and welfare. The report shall contain recommendations for new or revised standards to improve health outcomes and provide increased accountability and also an evaluation and recommendations of accreditation requirements for psychiatric hospitals and residential substance abuse facilities in this state.

            (4) Explore potential value-based financial incentives for Medicaid-enrolled psychiatric hospitals that sustain or exceed quality of care criteria. Data, information, and recommendations on such potential value-based financial incentives and quality of care criteria shall be included in the report required by Paragraph (3) of this Subsection.

            C. The department may consult with any agency, department, board, commission, accreditation organization, or other healthcare group or association to conduct its review and evaluation and for preparation of its report.

            D. For purposes of this Section, the following definitions shall apply:

            (1) "Department" means the Louisiana Department of Health.

            (2) "Psychiatric hospital" means any freestanding inpatient psychiatric hospital licensed by the department.

            (3) "Residential substance abuse facility" means any licensed behavioral health service provider with a residential substance use disorder treatment facility module.

            E. The department shall submit the report required by this Section on or before March 31, 2025, and upon submission of the report, this Section shall terminate.

            Acts 2024, No. 743, §1.