Requires the state health care authority to: (1) Integrate risk for long-term involuntary civil treatment provided by state hospitals into managed care contracts; and

(2) Develop a psychiatric managed care capitation risk model that integrates long-term inpatient care.

Requires the department of social and health services to: (1) Collaborate with the state health care authority and appropriate stakeholders and consultants to develop and implement a detailed transition plan taking certain recommendations into account;

(2) Purchase a portion of the state's long-term treatment capacity allocated to behavioral health organizations in willing community facilities capable of providing alternatives to treatment in a state hospital; and

(3) Enter into performance-based contracts with facilities certified by the department to provide treatment to adults on a ninety or one hundred eighty-day inpatient involuntary commitment order.