(1) As used in this section, unless the context otherwise requires: (a) "Mental health facility" means a facility approved to participate in the pilot program pursuant to subsection (2) of this section.(b) "Pilot program" means the mental health facility pilot program established pursuant to this section.(2) There is established in the department the mental health facility pilot program to authorize not more than two entities to participate in a three-year pilot program to allow individuals with either a physical health diagnosis or significant mental health diagnosis to reside in a facility that treats both the physical and mental health issues and provides additional services to help the individual transition to independent living.(3) On or before October 1, 2019, the department shall develop an application for interested entities to apply to be authorized as a mental health facility. The application must require the applicant to show, at a minimum, that it: (a) Is serving individuals with physical or mental or both physical and mental health diagnoses;(b) Offers staff secure environments rather than physically secure spaces;(c) Has the capability to provide integrated services with community medical and behavioral health providers;(d) Has sufficient staffing levels of licensed nurses, nursing assistants, and occupational and recreational professionals;(e) Has a partnership with either an acute care hospital or psychiatric hospital and with a skilled nursing facility, so it has the ability to transfer an individual in need of a higher level of care;(f) Demonstrates a collaborative relationship with the hospital, including consultation and treatment plan support, one-on-one staffing support, and ongoing training for staff at the mental health facility;(g) Is in a community that has resources to support community engagement to move an individual to less restrictive environments as an individual progresses;(h) Demonstrates cost savings or cost neutrality for the state medical assistance program;(i) Is willing and able to contribute at least one-third of the increased costs that the applicant will incur due to the pilot program and has identified sources for the other two-thirds; and(j) Is willing to prepare reports on the pilot program.(4) On or before February 1, 2020, the department shall select up to two applicants to become mental health facilities under the pilot program; except that, if more than one applicant is selected: (a) One selected applicant must be in a community with a population of over one hundred thousand and one selected applicant must be in a community with a population of under one hundred thousand unless there is no qualified applicant from such a community;(b) Both selected applicants must not be located in the same city unless the only qualified applicants are from a single city; and(c) Both selected applicants must not be assisted living facilities.(5) The department is authorized to adopt rules to implement the pilot program.(6) The state long-term care ombudsman office, established pursuant to section 26-11.5-104, has access to the premises and residents of a mental health facility during reasonable hours for the purposes set out in the federal "Older Americans Act of 1965".Added by 2019 Ch. 225, § 2, eff. 8/2/2019.L. 2019: Entire section added, (HB 19-1160), ch. 2261, p. 2261, § 2, effective August 2. (1) For the federal "Older Americans Act of 1965", see Pub.L. 89-76, codified at 42 U.S.C. § 3001 et seq. (2) For the legislative declaration in HB 19-1160, see section 1 of chapter 225, Session Laws of Colorado 2019.