Third Party Payments Revisited: Everything is Relative

  • Richard J. Cohen


For the first time in the history of the field, the National Drug Abuse Conference, 1976 saw significant interest and discussion of third party payment mechanisms for the drug and alcohol treatment system. Even then with numerous presentations directed at this area, a sense of questionable priority regarding this matter was indicated by many in attendance. Further, the potential for generating such revenue while maintaining program integrity was questioned. Of particular importance is the fact that many of these disinterested colleagues were program “bread-winners,” administrators and directors. The authors present information supporting the realization and utilization of third party revenue as a part of a diversified funding base for the financing of addiction services. These funds are projected as one portion of a total funding picture.

The current state of third party payment mechanisms is explored with the focus on these realities as they impact on Philadelphia. This paper explores a number of general developments within the third party area. The specific situation within Philadelphia is offered as heuristic to the addiction system. Processes for maximizing income and impact within Philadelphia are described. Projections of future trends are presented.


Funding Source Medical Assistance Party Payment Funding Stream Administrative Issue 
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Copyright information

© Plenum Press, New York 1981

Authors and Affiliations

  • Richard J. Cohen
    • 1
  1. 1.Coordinating Office for Drug and Alcohol Abuse Programs (CODAAP)USA

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