Skip to main content
Log in

The costs of mental health services under the Fort Bragg demonstration

  • Articles
  • Published:
The journal of mental health administration Aims and scope Submit manuscript

Abstract

This article examines the costs of treatment under the Fort Bragg Demonstration. It focuses on the direct costs of mental health services and suggests that expenditures on those services were much higher at the Demonstration. Increased access and greater “doses” of services provided at the Demonstration are identified as the proximal causes of the system-level cost difference. Consideration is given to whether these differences in costs and in service use can be attributed to the continuum of care per se or to differences in the financial arrangements under which care was provided. Supplemental analyses suggest that these expenditures were not offset by cost savings elsewhere. Implications for mental health policy are discussed.

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

  1. Gramlich EN:Benefit-Cost Analysis of Government Programs. Englewood Cliffs, NJ: Prentice Hall, 1981.

    Google Scholar 

  2. Pope GC: Using hospital-specific costs to improve the fairness of prospective reimbursement.Journal of Health Economics 1990; 9(3):237–251.

    Article  PubMed  CAS  Google Scholar 

  3. McIlrath S: Gap widens between Medicare, private pay.American Medical News February 14, 1994; 37(6):1, 24.

    Google Scholar 

  4. McGuire TG: Measuring the economic cost of schizophrenia.:Schizophrenia Bulletin 1991; 17(3):375–388.

    PubMed  CAS  Google Scholar 

  5. Rice DP, Kelman S, Miller LS, et al.,The Economic Costs of Alcohol and Drug Abuse and Mental Illness 1985. Rockville, MD: U.S. Department of Health and Human Services, 1990.

    Google Scholar 

  6. Wyatt RJ, Clark K: Calculating the cost of schizophrenia.Psychiatric Annals 1987; 17(9): 586–591.

    Google Scholar 

  7. Department of Human Resources.Operating Manual for the Pioneer Funding System, Volume 6. Raleigh, NC: Division of Mental Health, Mental Retardation and Substance Abuse Services, 1989.

    Google Scholar 

  8. CHAMPUS Handbook July 1992. Aurora, CO.

  9. Melek SM: How much will coverage for universal access to comprehensive behavioral healthcare really cost?Behavioral Healthcare Tomorrow, 1994, pp. 31–38.

  10. Behar L: Changing patterns of state responsibility: A case study of North Carolina. Special issue: Mental Health Services to Children.Journal of Clinical Child Psychology 1985; 14(3):188–195.

    Article  Google Scholar 

  11. Bickman L, Foster EM, Lambert EW: Who gets hospitalized in a managed care demonstration?Journal of the American Academy of Child and Adolescent Psychiatry, 1996; 35(1).

  12. McGuire TG:Financing Psychotherapy: Costs, Effects, and Public Policy. Cambridge, MA: Ballinger, 1981.

    Google Scholar 

  13. Frank RG: Pricing and location of physician services in mental health.Economic Inquiry 1985; 23:115–133.

    Article  PubMed  CAS  Google Scholar 

  14. Horgan CM: The demand for ambulatory mental health services from specialty providers.Health Services Research 1986; 21(2):291–319.

    PubMed  CAS  Google Scholar 

  15. Taube CA, Kessler LG, Burns BJ: Estimating the probability and level of ambulatory mental health services use.Health Services Research 1986; 21(2):321–340.

    PubMed  CAS  Google Scholar 

  16. Watts CA, Scheffler RM, Jewell NP: Demand for outpatient mental health services in a heavily insured population: The case of the Blue Cross and Blue Shield Association’s Federal Employees Health Benefits Program.Health Services Research 1986; 21(2):267–289.

    PubMed  CAS  Google Scholar 

  17. Ellis RP, McGuire TG: Cost sharing and patterns of mental health care utilization.Journal of Human Resources 1986; 21(3):359–379.

    Article  Google Scholar 

  18. Ellis RP: Rational behavior in the presence of coverage ceilings and deductibles.RAND Journal of Economics 1986; 17(2):158–175.

    Article  Google Scholar 

  19. Keeler EB, Manning WG, Wells KB: The demand for episodes of mental health services.Journal of Health Economics 1988; 7:369–392.

    Article  PubMed  CAS  Google Scholar 

  20. Wells KB, Manning WG, Duan N, et al.:Cost Sharing and the Demand for Ambulatory Mental Health Services. R-2960-HHS. Santa Monica, CA: RAND, 1982.

    Google Scholar 

  21. Padgett DK, Patrick C, Burns BJ, et al.: The effect of insurance benefit changes on use of child and adolescent outpatient mental health services.Medical Care 1993; 31(2):96–110.

    Article  PubMed  CAS  Google Scholar 

  22. Patrick C, Padgett DK, Burns BJ, et al.: Use of inpatient services by a national population: Do benefits make a difference?.Journal of the American Academy of Child and Adolescent Psychiatry 1993; 32(1):144–154.

    Article  PubMed  CAS  Google Scholar 

  23. Tsai SP, Reedy SM, Bernacki EJ, et al.: Effect of curtailed insurance benefits on use of mental health care: The Tenneco Health Plan.Medical Care 1986; 26(4):430–440.

    Article  Google Scholar 

  24. Manning WG, Newhouse JP, Duan N, et al.: Health insurance and the demand for medical care: Evidence from a randomized experiment.American Economic Review 1987; 77(3):251–277.

    PubMed  CAS  Google Scholar 

  25. Harrow BS, Ellis RP: Mental health providers’ response to the reimbursement system. In: Frank RG, Manning WG (Eds.):Economics and Mental Health. Baltimore: Johns Hopkins University Press, 1992, pp. 19–39.

    Google Scholar 

  26. English JT, Sharfstein SS, Scherl DJ, et al.: Diagnosis-related groups and general hospital psychiatry: The APA study.American Journal of Psychiatry 1986; 143:131–139.

    PubMed  CAS  Google Scholar 

  27. Lave JR, Frank RG: Effect of the structure of hospital payment in length of stay.Health Services Research 1990; 25:327–347.

    PubMed  CAS  Google Scholar 

  28. Grazier KL, McGuire TG: Payment systems and hospital resource use: A comparative analysis of psychiatric, medical, and obstetric services. In: McGuire TG, Scheffler R (Eds.):Advances in Health Economics and Health Services Research: The Economics of Mental Health Services 1987; 8:175–194.

  29. Ellis RP, McGuire TG: Provider response to prospective payment cost sharing and supply.Journal of Health Economics 1986; 5:129–151.

    Article  PubMed  CAS  Google Scholar 

  30. Seidman RL, Frank RG: Hospital responses to incentives in alternative reimbursement systems.Journal of Behavioral Economics 1985; 14(Winter):155–180.

    Article  Google Scholar 

  31. Rumbaugh Clinic.Utilization Management Report for September, Fayetteville, NC: Cardinal Mental Health Group, 1992.

    Google Scholar 

  32. Hostetter RE: Review of the Quality Improvement (QI) Program: Rumbaugh Clinic, Fort Bragg Mental Health Demonstration Program, January, 1994, pp. 19–21. Unpublished report.

  33. Bickman L, Guthrie P, Foster M, et al.:Managed Care in Mental Health: The Fort Bragg Experiment. New York: Plenum, in press.

Download references

Author information

Authors and Affiliations

Authors

Additional information

This research is supported by the U.S. Army Health Services Command (DADA 10-89-C-0013) as a subcontract from the North Carolina Department of Human Resources/Division of Mental Health, Developmental Disabilities and Substance Abuse Services, and a grant to Dr. Leonard Bickman (R01MH-46136-01) from the National Institute of Mental Health. This article is part of a special issue that focuses on the Fort Bragg Evaluation. These articles are best understood when read together. The articles are cross-referenced when it is deemed most appropriate.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Foster, E.M., Summerfelt, W.T. & Saunders, R.C. The costs of mental health services under the Fort Bragg demonstration. The Journal of Mental Health Administration 23, 92–106 (1996). https://doi.org/10.1007/BF02518646

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF02518646

Keywords

Navigation