Adds a new subsection (b1) to GS 122C-147 to require mental health Local Management Entities/Managed Care Organizations (LME/MCO) entering into real estate projects costing more than $100,000 to report at least 90 days before purchasing, altering, improving, or rehabilitating the real estate, to the Boards of the County Commissioners within the geographic area served, the Department of Health and Human Services (DHHS), and the Joint Legislative Commission on Governmental Operations on the following areas: (1) costs of the project disaggregated into use categories, (2) sources of funding, (3) amount of financial reserves, (4) administrative costs for two prior fiscal years and the current fiscal year, (5) denial rates for properly requested Medicaid services from two prior fiscal years and the current fiscal year, and (6) the percentage of available reserves as a percentage of the annual operating budget. Effective July 1, 2014.

Amends Section 1(a) of SL 2011-264, as amended, directing DHHS to consider the available financial reserves and administrative costs of an LME functioning as a managed care organization in DHHS' negotiations of per member per month payment rates.