IC 12-21-2
    Chapter 2. Director of Division

IC 12-21-2-1
Appointment
    
Sec. 1. The division shall be administered by a director appointedunder IC 12-8-8-1.
As added by P.L.2-1992, SEC.15.

IC 12-21-2-2
Application of IC 12-8-8
    
Sec. 2. IC 12-8-8 applies to the director.
As added by P.L.2-1992, SEC.15.

IC 12-21-2-3
Authority; duties
    
Sec. 3. (a) In addition to the general authority granted to thedirector under IC 12-8-8, the director shall do the following:
        (1) Organize the division, create the appropriate personnelpositions, and employ personnel necessary to discharge thestatutory duties and powers of the division or a bureau of thedivision.
        (2) Subject to the approval of the state personnel department,establish personnel qualifications for all deputy directors,assistant directors, bureau heads, and superintendents.
        (3) Subject to the approval of the budget director and thegovernor, establish the compensation of all deputy directors,assistant directors, bureau heads, and superintendents.
        (4) Study the entire problem of mental health, mental illness,and addictions existing in Indiana.
        (5) Adopt rules under IC 4-22-2 for the following:
            (A) Standards for the operation of private institutions thatare licensed under IC 12-25 for the diagnosis, treatment, andcare of individuals with psychiatric disorders, addictions, orother abnormal mental conditions.
            (B) Licensing supervised group living facilities described inIC 12-22-2-3 for individuals with a mental illness.
            (C) Certifying community residential programs described inIC 12-22-2-3 for individuals with a mental illness.
            (D) Certifying community mental health centers to operatein Indiana.
            (E) Establish exclusive geographic primary service areas forcommunity mental health centers. The rules must include thefollowing:
                (i) Criteria and procedures to justify the change to theboundaries of a community mental health center's primaryservice area.
                (ii) Criteria and procedures to justify the change of anassignment of a community mental health center to aprimary service area.                (iii) A provision specifying that the criteria and proceduresdetermined in items (i) and (ii) must include an option forthe county and the community mental health center toinitiate a request for a change in primary service area orprovider assignment.
                (iv) A provision specifying the criteria and proceduresdetermined in items (i) and (ii) may not limit an eligibleconsumer's right to choose or access the services of anyprovider who is certified by the division of mental healthand addiction to provide public supported mental healthservices.
        (6) Institute programs, in conjunction with an accredited collegeor university and with the approval, if required by law, of thecommission for higher education, for the instruction of studentsof mental health and other related occupations. The programsmay be designed to meet requirements for undergraduate andpostgraduate degrees and to provide continuing education andresearch.
        (7) Develop programs to educate the public in regard to theprevention, diagnosis, treatment, and care of all abnormalmental conditions.
        (8) Make the facilities of the Larue D. Carter MemorialHospital available for the instruction of medical students,student nurses, interns, and resident physicians under thesupervision of the faculty of the Indiana University School ofMedicine for use by the school in connection with research andinstruction in psychiatric disorders.
        (9) Institute a stipend program designed to improve the qualityand quantity of staff that state institutions employ.
        (10) Establish, supervise, and conduct community programs,either directly or by contract, for the diagnosis, treatment, andprevention of psychiatric disorders.
        (11) Adopt rules under IC 4-22-2 concerning the records anddata to be kept concerning individuals admitted to stateinstitutions, community mental health centers, or managed careproviders.
        (12) Establish, maintain, and reallocate before July 1, 1996,one-third (1/3), and before January 1, 1998, the remainingtwo-thirds (2/3) of the following:
            (A) long term care service settings; and
            (B) state operated long term care inpatient beds;
        designed to provide services for patients with long termpsychiatric disorders as determined by the quadrennial actuarialstudy under IC 12-21-5-1.5(9). A proportional number of longterm care service settings and inpatient beds must be located inan area that includes a consolidated city and its adjacentcounties.
        (13) Compile information and statistics concerning the ethnicityand gender of a program or service recipient.
        (14) Establish standards for each element of the continuum of

care for community mental health centers and managed careproviders.
    (b) As used in this section, "long term care service setting" meansthe following:
        (1) The anticipated duration of the patient's mental healthsetting is more than twelve (12) months.
        (2) Twenty-four (24) hour supervision of the patient isavailable.
        (3) A patient in the long term care service setting receives:
            (A) active treatment if appropriate for a patient with achronic and persistent mental disorder or chronic addictivedisorder;
            (B) case management services from a state approvedprovider; and
            (C) maintenance of care under the direction of a physician.
        (4) Crisis care is available.
    (c) Funding for services under subsection (a)(12) shall beprovided by the division through the reallocation of existingappropriations. The need of the patients is a priority for services. Thedivision shall adopt rules to implement subsection (a)(12) before July1, 1995.
As added by P.L.2-1992, SEC.15. Amended by P.L.40-1994, SEC.28;P.L.142-1995, SEC.4; P.L.111-1997, SEC.3; P.L.215-2001, SEC.56;P.L.79-2002, SEC.1; P.L.2-2007, SEC.163; P.L.99-2007, SEC.100.

IC 12-21-2-4
Community programs; availability of services
    
Sec. 4. Subject to IC 12-26-2-9, the services provided undercommunity programs under section 3(10) of this chapter must beavailable to any person upon a court order under IC 12-26.
As added by P.L.2-1992, SEC.15.

IC 12-21-2-5
Delegation of duties or powers; final decision requirement;exemption
    
Sec. 5. (a) Subject to subsection (b), the director may delegatestatutory duties or powers of the division, a bureau of the division,the director, or other statutorily created personnel.
    (b) If the director decides that a final decision is to be madeconcerning the placement of an individual with a mental illness in amental health facility, the final decision must be made:
        (1) by the director, if the director is a licensed psychiatrist orlicensed psychologist; or
        (2) by a licensed psychiatrist or licensed psychologist who isdelegated the authority by the director;
in consultation with the patient's psychiatrist or psychologist.
    (c) Subsection (b) does not apply to an initial placementdesignation made under IC 12-24-12-10(b).
As added by P.L.2-1992, SEC.15. Amended by P.L.25-2003, SEC.2;P.L.184-2003, SEC.12; P.L.99-2007, SEC.101.
IC 12-21-2-6
Repealed
    (Repealed by P.L.40-1994, SEC.83.)

IC 12-21-2-7
Contracts; powers; approval; requisites
    
Sec. 7. (a) The director may act for the division in entering intocontracts for the disbursal of money and the providing of service.
    (b) Before entering into a contract under this section, the directorshall submit the contract to the attorney general for approval as toform and legality.
    (c) A contract under this section must do the following:
        (1) Specify the services to be provided and the clientpopulations to whom services must be provided.
        (2) Provide for a reduction in funding for the failure to complywith terms of the contract.
As added by P.L.2-1992, SEC.15. Amended by P.L.40-1994, SEC.29.

IC 12-21-2-8
Monitoring, evaluation, and quality assurance; award of contracts;reimbursement of contract payments; approval of contracts;required contents of contracts
    
Sec. 8. (a) The director shall develop a comprehensive system ofmonitoring, evaluation, and quality assurance for the continuum ofcare required by this chapter.
    (b) The director shall determine to whom contracts are awarded,based on the following factors:
        (1) The continuity of services a contractor provides for patients.
        (2) The accessibility of a contractor's services to patients.
        (3) The acceptability of a contractor's services to patients.
        (4) A contractor's ability to focus services on building theself-sufficiency of the patient.
    (c) This subsection applies to the reimbursement of contractpayments to managed care providers. Payments must be determinedprospectively in accordance with generally accepted accountingprinciples and actuarial principles recognizing costs incurred byefficiently and economically operated programs that:
        (1) serve individuals with a mental illness or substance abusepatients; and
        (2) are subject to quality and safety standards and laws.
    (d) Before entering into a contract under this section, the directorshall submit the contract to the attorney general for approval as toform and legality.
    (e) A contract under this section must do the following:
        (1) Specify:
            (A) the work to be performed; and
            (B) the patient populations to whom services must beprovided.
        (2) Provide for a reduction in funding or termination of thecontract for failure to comply with terms of the contract.        (3) Require that the contractor meet the standards set forth inrules adopted by the division of mental health and addictionunder IC 4-22-2.
        (4) Require that the contractor participate in the division'sevaluation process.
        (5) For any service for which the division chooses to contracton a per diem basis, the per diem reimbursement shall bedetermined under subsection (c) for the contractor's reasonablecost of providing services.
        (6) In contracts with capitated payment provisions, provide thatthe contractor's cost of purchasing stop-loss insurance for thepatient populations to be served in amounts and with limitscustomarily purchased by prepaid health care plans must be:
            (A) included in the actuarial determination of the capitatedpayment amounts; or
            (B) separately paid to the contractor by the division.
        (7) Provide that a contract for enumerated services granted bythe division under this section to an approved managed careprovider may not create or confer upon the managed careprovider liability or responsibility for care or services beyondthose services supported by the contract.
As added by P.L.40-1994, SEC.30. Amended by P.L.215-2001,SEC.57; P.L.99-2007, SEC.102.

IC 12-21-2-9
Repealed
    
(Repealed by P.L.40-1994, SEC.85.)