Skip to main content
Log in

Abstract

Six urban community mental health centers participated in a capitated payment system designed for persons with severe mental illness who frequently used the state hospital. The centers and their funding agency agreed that a chief outcome measure would be the length of time clients were able to remain enrolled in the outpatient program. Clients of the six agencies were quite similar to one another. During the 18-month study length of enrollment in the outpatient program did not vary among the agencies whereas agency expenditures varied by more than three-fold. Although some of this expenditure variation was due to economies of scale at larger agencies, different practice styles also contributed to variable efficiency.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Agresti, A. (1990).Categorical data analysis. New York: John Wiley and Sons.

    Google Scholar 

  • Armitage, P., & Barry, G.(1987).Statistical methods in medical research. (2nd ed.) Oxford: Blackwell Scientific Publications.

    Google Scholar 

  • Barker, S., Barron, N., McFarland, B.H., & Bigelow, D.A. (1994a). A community ability scale for chronically mentally ill consumers—part I. Reliability and validity.Community Mental Health Journal, 30, 363–382.

    PubMed  Google Scholar 

  • Barker, S., Barron, N., McFarland, B.H., Bigelow, D.A. & Carnahan, T. (1994b). A community ability scale for chronically mentally ill consumers—part II. Applications.Community Mental Health Journal, 30, 459–472.

    PubMed  Google Scholar 

  • Berki, S.E. (1995). Measuring costs using episodes of care. In: M.L. Grady & K.A. Weis (Eds.),Cost analysis methodology for clinical practice guidelines (AHCPR Pub. No. 95-0001). Rockville, MD: U.S. Department of Health and Human Services, Agency for Health Care Policy and Research.

    Google Scholar 

  • Berwick, D.M., Godfrey, A.B., & Roessner, J. (1990).Curing health care: New strategies for quality improvement. San Francisco: Jossey-Bass.

    Google Scholar 

  • Brook, R.H., Davies-Avery, A., Greenfield, S., Harris, J., Lelah, T., Solomon, N.E., & Ware, J.E. (1977). Assessing the quality of medical care using outcome measures: An overview of the method.Medical Care,15 (Supplement to number 9).

  • Brook, R.H., & Lohr, K.N. (1985). Efficacy, effectiveness, variations, and quality.Medical Care, 23, 710–722.

    PubMed  Google Scholar 

  • Brown, M.A., Ridgway, P., Anthony, W.A., & Rogers, E.S. (1991). Comparison of outcomes for clients seeking and assigned to supported housing services.Hospital & Community Psychiatry, 42, 1150–1153.

    Google Scholar 

  • Casler, S.D. (1992).Introduction to economics. New York: Harper Collins.

    Google Scholar 

  • Cohen, J. (1988).Statistical power analysis for the behavioral sciences. (2nd ed.). Hillsdale, NJ: Lawrence Ehrlbaum Associates.

    Google Scholar 

  • Dickey, B., & Cohen, M.D. (1991). Financing state mental health programs: Issue and options. In C.G. Hudson & A.J. Cox (Eds.),Dimensions of state mental health policy. New York: Praeger.

    Google Scholar 

  • Dietzen, L.L. & Bond, G.R. (1993). Relationship between case manager contact and outcome for frequently hospitalized psychiatric clients.Hospital & Community Psychiatry, 44, 839–843.

    Google Scholar 

  • Drummond, M.F. (1980).Principles of economic appraisal in health care. New York: Oxford University Press.

    Google Scholar 

  • Drummond, M.F., Stoddart, G.L., & Torrance, G.W. (1987).Methods for the economic evaluation of health care programmes. New York: Oxford University Press.

    Google Scholar 

  • Eastaugh, S.R. (1992a).Health economics: Efficiency, quality, and equity. Westport, CT: Auburn House.

    Google Scholar 

  • Eastaugh, S.R. (1992b).Health care finance: Economic incentives and productivity enhancement. Westport, CT: Auburn House.

    Google Scholar 

  • Feldman, S. (1992). Managed mental health services: Ideas and issues. In S. Feldman (Ed.),Managed mental health services. Springfield, IL: Charles C. Thomas.

    Google Scholar 

  • Feldstein, P.J. (1993).Health care economics (4th ed.) Albany, NY: Delmar Publishers.

    Google Scholar 

  • Fuchs, V.R. (1986).The health economy. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Hornbrook, M.C. (1995). Definition and measurement of episodes of care in clinical and economic studies. In M.L. Grady & K.A. Weis (Eds.),Cost analysis methodology for clinical practice guidelines. (AHCPR Pub. No. 95-0001). Rockville, MD: U.S. Department of Health and Human Services, Agency for Health Care Policy and Research.

    Google Scholar 

  • Hosmer, D.W., & Lemershow, S. (1989).Applied logistic regression. New York: John Wiley and Sons.

    Google Scholar 

  • Hudson, C.G., & Cox, A.J. (1991). Introduction. In C.G. Hudson & A.J. Cox (Eds.),Dimensions of state mental health policy. New York: Praeger.

    Google Scholar 

  • Jacobs, P. (1980).The economics of health and medical care: An introduction. Baltimore: University Park Press.

    Google Scholar 

  • McFarland, B.H., Bigelow, D.A., Smith, J.C., Hornbrook, M.C., Mofidi, A., & Payton, P. (1995a). Capitated payment system for involuntary mental health clients.Health Affairs, 14, 185–196.

    PubMed  Google Scholar 

  • McFarland, B.H., Smith, J., Bigelow, D.A. & Mofidi, A. (1995b). Unit costs of community mental health services.Administration and Policy in Mental Health, 23, 27–42.

    Google Scholar 

  • Menard, S. (1995).Applied logistic regression analysis. Thousand Oaks, CA: Sage Publications.

    Google Scholar 

  • Mofidi, A., Hargreaves, W.A., McFarland, B.H., Bigelow, D.A., Smith, J.C., & Hornbrook, M.C. (1995). The dynamics of a capitated payment system for mental health care. Unpublished manuscript, Department of Psychiatry, San Francisco General Hospital, San Francisco, CA.

    Google Scholar 

  • Nakamoto, D., & Altaffer, F. (1991). Cutback management using information and research.Administration and Policy in Mental Health, 19, 255–268.

    Google Scholar 

  • Newman, F.L., & Sorensen, J. (1985).Integrated clinical and fiscal management in mental health: A guidebook. Norwood, NJ: Ablex Publishing Corporation.

    Google Scholar 

  • Rapoport, J., Robertson, R.L., & Stuart, B. (1982).Understanding health economics. Rockville, MD: Aspen Systems Corporation.

    Google Scholar 

  • Rubin, J. (1982). Cost measurement and cost data in mental health settings.Hospital & Community Psychiatry, 33, 750–754.

    Google Scholar 

  • Samuelson, P.A., & Nordhaus, W.D. (1992).Economics (14th ed.). New York: McGraw Hill.

    Google Scholar 

  • Schinnar, A.P., Kamis-Gould, E., Delucia, N., & Rothbard, A.B. (1990). Organizational determinants of efficiency and effectiveness m mental health partial care programs.HSR: Health Services Research, 25, 387–420.

    Google Scholar 

  • Sherman, P.S., & Gomez, M. (1982). Quality assurance uses of level of functioning ratings.QRB/Quality Review Bulletin, 8(7), 22–30.

    Google Scholar 

  • Siegert, F.E. & Yates, B.T. (1980). Behavioral child-management cost-effectiveness: A comparison of individual in-office, individual in-home, and group delivery systems.Evaluation and the Health Professions, 3, 123–152.

    Google Scholar 

  • Smith, T.S. (1977). Budgeting subsystems. In W.A. Hargreaves, C.C. Attkisson, & J.E. Sorensen (Eds.),Resource materials for community mental health program evaluation (2nd ed.) (DHEW Pub. No. ADM 77-328). Washington, DC: U.S. Government Printing Office.

    Google Scholar 

  • Smith, T.S., & Sorensen, J.E. (1977). Cost-finding/rate-setting subsystems. In W.A. Hargreaves, C.C. Attkisson, & J.E. Sorensen (Eds.),Resource materials for community mental health program evaluation (2nd ed.) (DHEW Pub. No. ADM 77-328). Washington, DC: U.S. Government Printing Office.

    Google Scholar 

  • Solomon, P. (1992). The efficacy of case management services for severely mentally disabled clients.Community Mental Health Journal, 28, 163–180.

    PubMed  Google Scholar 

  • Sorensen, J.E. (1985). Fiscal survival of community mental health in the 80's: Sharing demonstrated methods to increase revenues and decrease expenses.Community Mental Health Journal, 21, 223–227.

    Google Scholar 

  • Sorensen, J.E., Hanbery, G.W., & Kucic, A.R. (1983).Accounting and budgeting systems for mental health organizations (DHHS Pub. No. ADM 83-1046). Washington, DC: U.S. Government Printing Office.

    Google Scholar 

  • Sorensen, J.E., Zelman, W., & Hanbery, G.W. (1986). Key performance indicators to manage mental health organizations. In C. Windle, J.H. Jacobs, & P.S. Sherman (Eds.),Mental health performance measurement (DHHS Pub. No. ADM 86-1441) Washington, DC: U.S. Government Printing Office.

    Google Scholar 

  • Sorensen, J.E., Zelman, W., Hanbery, G.W., & Kucic, A.R. (1987). Managing mental health organizations with 25 key performance indicators.Evaluation and Program Planning, 10, 239–247.

    PubMed  Google Scholar 

  • Wald, A. (1940). A note on the analysis of variance with unequal class frequencies.Annals of Mathematical Statistics, 11, 96–100.

    Google Scholar 

  • Wheeler, J.R.C. (1995). Guideline cost-effectiveness: Issues for research. In M.L. Grady & K.A. Weis (Eds.),Cost analysis methodology for clinical practice guidelines (AHCPR Pub. No. 95-0001). Rockville, MD: U.S. Department of Health and Human Services, Agency for Health Care Policy and Research.

    Google Scholar 

  • Wolff, N., Helminiak, T.W., & Diamond, R.J. (1995). Estimated societal costs of assertive community mental health care.Psychiatric Services, 46, 898–906.

    PubMed  Google Scholar 

  • Yates, B.T. (1980).Improving effectiveness and reducing costs in mental health. Springfield, IL: Charles C. Thomas Publisher.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Additional information

This study was partially supported by the National Institute of Mental Health, grant numbers P50 MH43458 and R01 MH45015.

Rights and permissions

Reprints and permissions

About this article

Cite this article

McFarland, B.H., Bigelow, D.A., Smith, J. et al. Community mental health program efficiency. Adm Policy Ment Health 24, 459–474 (1997). https://doi.org/10.1007/BF02042825

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF02042825

Keywords

Navigation