IDEAS home Printed from
   My bibliography  Save this article

Preliminary Results of a Controlled Trial of the Effect of a Prepaid Group Practice on the Outpatient Use of Mental Health Services


  • Willard G. Manning
  • Kenneth B. Wells


Using data from the Rand Health Insurance Study, which randomly assigned families into a prepaid group practice (PGP) and a fee-for-service insurance plan, this study finds different patterns of outpatient mental health care for the two groups. In the absence of cost sharing, fee-for-service participants are as likely as PGP participants to visit formally trained mental health specialists, but with 2.8 times greater imputed expenditures. Thus, fee-for-service provides more intensive therapy. Because the participants are random samples of the same population, these differences result from institutional differences (and patient incentives for cost sharing) rather than adverse selection.

Suggested Citation

  • 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.
  • Handle: RePEc:uwp:jhriss:v:21:y:1986:i:3:p:293-320

    Download full text from publisher

    File URL:
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Debra Sabatini Dwyer & Olivia S. Mitchell & Robert Cole & Sylvia K. Reed, 1995. "Evaluating Mental Health Capitation Treatment: Lessons from Panel Data," NBER Working Papers 5297, National Bureau of Economic Research, Inc.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:jhriss:v:21:y:1986:i:3:p:293-320. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.