LD 1515
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Page 1 of 6 Resolve, To Establish a Responsive, Community-based, Cost-effective and Compreh... Page 3 of 6
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LR 1402
Item 1

 
A. An actuarial analysis. In accordance with 42 Code of
Federal Regulations, Section 438.6(c), any system design that
includes capitation, risk-sharing or other significant changes
in the reimbursement methodology to providers of mental health
services must be developed with the involvement of independent
actuarial expertise. A joint committee that includes providers
and representatives from the appropriate offices of State
Government, as determined by the Governor, shall oversee the
development of the rate-setting methodology. Capitation
reimbursement methodologies must give due consideration to the
issues of appropriate levels of care and the needs of high-
cost recipients of services who may need residential treatment
services;

 
B. A human resources analysis. The department shall
undertake an independent human resource needs analysis that
describes what managerial and administrative skills and
services will need to be purchased in order to carry out the
design, pricing, implementation and management of any new
systems design. This analysis must also describe what
services will be eliminated from direct departmental
responsibility to allow for administrative savings;

 
C. An administrative burdens review. Identification of
savings and system efficiencies must begin with a review and
reduction of administrative burdens and the cost of these
burdens to direct service agencies. The reductions in both
administrative burdens and cost must achieve a savings of at
least 15% in the costs of the system in 2005;

 
D. A data systems readiness review. The department shall
identify the minimum data set necessary for appropriate
oversight, management and outcome measurement of the system
of care. As a part of its plan for system redesign, the
department shall undertake a review of data requirements and
the capabilities of existing data systems in order to
determine, prior to implementation, what, if any, enhanced
data capacity will need to be purchased from independent
vendors;

 
E. Development of an outcome measures assessment. In
consultation with consumers, providers and other stakeholders,
the department shall develop a manageable, measurable set of
performance standards and contract outcome measures for the
regional system. These performance standards and outcome measures
must be based on existing mandates and developed with due regard
to available


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