Provides funds to begin the process of closing Catawba Hospital by the end of FY 2018. Funds are included to support the purchase of private inpatient beds to divert individuals from being admitted to Catawba during the closure period, for the implementation of a staff retention plan, for the agency to secure a program manager tasked with beginning the closure process, and other related expenditures associated with developing a closure plan. The agency must submit a plan for expenditure of these funds to the Secretary of Health and Human Resources and the Secretary of Finance. Language is included that requires the agency to submit budget requests for consideration by the 2017 General Assembly for the full costs of moving long-term patients into community settings, and for building community capacity for those who would otherwise be served by the hospital.