Article: Expenditures for mental health services in the Utah prepaid mental health plan.

INTRODUCTION

The reimbursement of mental health care providers using capitation payment rates has been a controversial issue for Medicaid programs. In theory, capitated payment, when accompanied by the risk of financial loss or the potential for financial gain, should reduce the use of expensive inpatient treatment settings and encourage the use of less-costly inpatient settings and outpatient treatment programs. Capitated payment arrangements could generate more efficient delivery of health care, because they assign the responsibility for the financing and delivery of services to a single organizational entity. However, a major issue in the use of capitation ...

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