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Evaluating Mental Health Capitation Treatment: Lessons from Panel Data

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

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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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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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Handle: RePEc:nbr:nberwo:5297

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  1. 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. [Downloadable!] (restricted)
  2. Brooke S. Harrow & Randall P. Ellis, 1991. "Mental Health Provider Response to the Reimbursement System," Papers 0009, Boston University - Industry Studies Programme.
  3. Ashenfelter, Orley & Card, David, 1985. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 648-60, November. [Downloadable!] (restricted)
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