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Evaluating Mental Health Capitation Treatment: Lessons from Panel Data

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  • Debra Sabatini Dwyer
  • Olivia S. Mitchell
  • Robert Cole
  • Sylvia K. Reed

Abstract

The paper evaluates a capitation-financed system of mental health services delivery developed in Rochester, New York. Cost/benefit analysis of the treatment program is implemented on three years of data using program evaluation techniques. Patient outcomes are compared across randomly assigned study groups as well as across enrollment status. The analysis implements difference-in-difference econometric techniques recently developed in the labor economics literature to control for potentially non-random attrition as well as selective non-compliance. We find that patients enrolled in the capitation program do experience significantly lower costs without becoming sicker, even after controlling for attrition and sample selection.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5297.

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Date of creation: Oct 1995
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Publication status: published as In Research in Labor Economics. Ed. Sol Polachek. Greenwich CT: Jai Press,1996
Handle: RePEc:nbr:nberwo:5297

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  1. Willard G. Manning & Kenneth B. Wells, 1986. "Preliminary Results of a Controlled Trial of the Effect of a Prepaid Group Practice on the Outpatient Use of Mental Health Services," Journal of Human Resources, University of Wisconsin Press, vol. 21(3), pages 293-320.
  2. Hausman, Jerry A & Wise, David A, 1979. "Attrition Bias in Experimental and Panel Data: The Gary Income Maintenance Experiment," Econometrica, Econometric Society, vol. 47(2), pages 455-73, March.
  3. Orley Ashenfelter & David Card, 1984. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," NBER Working Papers 1489, National Bureau of Economic Research, Inc.
  4. James J. Heckman, 1989. "Choosing Among Alternative Nonexperimental Methods for Estimating the Impact of Social Programs: The Case of Manpower Training," NBER Working Papers 2861, National Bureau of Economic Research, Inc.
  5. Brooke S. Harrow & Randall P. Ellis, 1991. "Mental Health Provider Response to the Reimbursement System," Papers 0009, Boston University - Industry Studies Programme.
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