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January 10, 2007
Final Report & Gaps Analysis
The analysis presents the current status of North Carolinas mental
health service system and presents a comparison with national
averages. Key findings include
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North Carolina serves more people in inpatient settings that the
national average. The state hospital admission rate of 1.26 per
1,000 people is the highest inpatient referral rate in the nation;
the national average is 0.61 per 1,000
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North Carolina spends 65.5% of its funding for mental health and
substance abuse treatment on inpatient facilities. The national
average is 37.7%. The state spends $16.80 per capita for
community-based services, which is the lowest in the nation.
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Hospital inpatient admissions are driven in part by referring
staff bias for inpatient treatment and a lack of information
sharing between emergency room staffs and Local Management
Entities (LME) and lack of utilization controls to divert people
to more appropriate settings
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LMEs do not report which services they offer, so referrers have no
way to know if the LME can meet a persons needs and there is no
formal state-supervised process to downsize inpatient facilities
and build up community-based services
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