If public funds are allocated efficiently , then an increase in expenditure should improve the performance of substance abuse treatment programs. However, the unconditional correlation between performance and expenditures per patient is non-positive in the data sets used in this paper. One...

This paper compares the cost and quality incentive effects of cost reimbursement and prospective payment systems in the health industru when providers are altuistic. Provider's behavioral rule is governed by a desire to maximize a weighted sum of profit and consumers' health benefit.

This paper examines the changes in costs of mental health and substance abuse services ina carve out program initiated in 1993 by the Group Insurance Commission (GIC) of the Commonwealth of of Massachusetts, and related those changes to initiatives in the contract the GIC agreed upon with the...