A Management Project to Determine the Potential Cost Avoidance Due to the Application of Managed Care Mechanisms on CHAMPUS Inpatient Mental Health Care in Colorado Springs, Colorado
Final rept. Jul 1989-Jul 1990,
ACADEMY OF HEALTH SCIENCES (ARMY) FORT SAM HOUSTON TX HEALTH CARE ADMINISTRATION
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Mental health services encompass the treatment for psychoses and substance abuse diagnoses. The demand for mental health services in this country is growing at an annual rate of 15 percent and new represents one quarters of total national health care expenditures. In the military system, CHAMPUS expenditures for mental health services have increased from 19.0 percent of the Champus budget in FY 1987 to 23.3 percent of the total budget in FY 1988. This total increase reflects a 30 percent increase in the inpatient costs and a 19 percent increase in inpatient days in 1988. In FY 1988 alone, CHAMPUS spent over 8 million dollars for mental health care in the Colorado Springs area. To control mental health care costs, many third-party payors have begun to actively apply managed care mechanisms, with positive results. This study examines the current models of managed care mechanisms developed and employed in the civilian sector and the potential cost avoidance that may be realized by their application to CHAMPUS inpatient mental health care in Colorado Springs, Colorado.
- Economics and Cost Analysis
- Medicine and Medical Research