Directs the Department of Health and Human Services (DHHS) to study the recommendation, as title indicates, including a recommendation that DHHS develop a pilot program to evaluate the costs, quality, consumer satisfaction, and patient outcomes of the transitional program. Enumerates a non-inclusive list of recommendations for evaluation. Directs DHHS to report to the NC Study Commission on Aging and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services on or before October 1, 2012.