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

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  • Richard C. Lindrooth
  • Anthony T. Lo Sasso
  • Ithai Z. Lurie

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.

Suggested Citation

  • Richard C. Lindrooth & Anthony T. Lo Sasso & Ithai Z. Lurie, 2006. "The effect of distance to provider on employee response to changes in mental health benefits," Health Economics, John Wiley & Sons, Ltd., vol. 15(10), pages 1133-1141, October.
    • Handle: RePEc:wly:hlthec:v:15:y:2006:i:10:p:1133-1141
    DOI: 10.1002/hec.1118
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    Cited by:

    1. Cook, Benjamin Lê & Doksum, Teresa & Chen, Chih-nan & Carle, Adam & Alegría, Margarita, 2013. "The role of provider supply and organization in reducing racial/ethnic disparities in mental health care in the U.S," Social Science & Medicine, Elsevier, vol. 84(C), pages 102-109.
    2. Sean Shenghsiu Huang & John R. Bowblis, 2018. "The principal–agent problem and owner‐managers: An instrumental variables application to nursing home quality," Health Economics, John Wiley & Sons, Ltd., vol. 27(11), pages 1653-1669, November.
    3. Deza, Monica & Maclean, Johanna Catherine & Solomon, Keisha, 2022. "Local access to mental healthcare and crime," Journal of Urban Economics, Elsevier, vol. 129(C).
    4. Monica Deza & Johanna Catherine Maclean & Keisha T. Solomon, 2020. "Local Access to Mental Healthcare and Crime," NBER Working Papers 27619, National Bureau of Economic Research, Inc.

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