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The effect of distance to provider on employee response to changes in mental health benefits

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Author Info
Richard C. Lindrooth (Department of Health Administration and Policy, Medical University of South Carolina, Charleston, SC, USA)
Anthony T. Lo Sasso (Health Policy and Administration Division, School of Public Health, University of Illinois at Chicago, Chicago, IL, USA)
Ithai Z. Lurie (Institute for Policy Research, Northwestern University, Evanston IL, USA)

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Abstract

We assess whether distance to provider moderates the effect of a change in mental health benefits on treatment initiation of employees of a large US-based company for psychiatric disorders. Mental health treatment administrative claims data plus eligibility information provided by a Fortune 50 company for the years 1995-1998 are used for the analysis. The effect of distance is measured using the relative effect of the initiative on residents living far from providers compared to those living close to providers. We model the probability of treatment initiation using a random effects logit specification. We find that the effect of distance to provider has the potential to over-shadow other incentives to initiate treatment, especially at distances greater than 4 miles. These results lend further support to the notion that geographic dispersion of providers should be an important consideration when forming a selective contracting network. Copyright © 2006 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1118
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 15 (2006)
Issue (Month): 10 ()
Pages: 1133-1141
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:wly:hlthec:v:15:y:2006:i:10:p:1133-1141

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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  1. Ching-To Albert Ma & Thomas G. Mcguire, 2002. "Network Incentives in Managed Health Care," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 11(1), pages 1-35, 03. [Downloadable!] (restricted)
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  2. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July. [Downloadable!] (restricted)
  3. Keeler, Emmett B. & Manning, Willard G. & Wells, Kenneth B., 1988. "The demand for episodes of mental health services," Journal of Health Economics, Elsevier, vol. 7(4), pages 369-392, December. [Downloadable!] (restricted)
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This page was last updated on 2009-11-16.

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