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The Effect of Benefit Design on the Length of Stay of Medicaid Psychiatric Patients

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  • Richard G. Frank
  • Judith R. Lave

Abstract

This paper examines the factors affecting the length of stay of Medicaid psychiatric patients with a model of supply responses to different patient, environmental, and regulatory characteristics. The results indicate that providers respond to limitations in both coverage and reimbursement. Treatment of psychiatric patients is found to respond strongly to financial incentives, suggesting that in any study of the length of stay of psychiatric patients, the structure of their insurance coverage must be considered. This finding makes it difficult to infer medically appropriate patterns of care from observed length-of-stay data.

Suggested Citation

  • Richard G. Frank & Judith R. Lave, 1986. "The Effect of Benefit Design on the Length of Stay of Medicaid Psychiatric Patients," Journal of Human Resources, University of Wisconsin Press, vol. 21(3), pages 321-337.
    • Handle: RePEc:uwp:jhriss:v:21:y:1986:i:3:p:321-337
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    Cited by:

    1. Galina Besstremyannaya, 2013. "Heterogeneous hospital response to a per diem prospective payment system," Working Papers w0193, Center for Economic and Financial Research (CEFIR).
    2. Cutler, David M. & Zeckhauser, Richard J., 2000. "The anatomy of health insurance," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 11, pages 563-643, Elsevier.
    3. Galina Besstremyannaya, 2013. "Heterogeneous hospital response to a per diem prospective payment system," Working Papers w0193, New Economic School (NES).
    4. Woojin Chung & Hoo-Sun Chang & Sun-Min Oh & Chung-Won Yoon, 2013. "Factors associated with long-stay status in patients with schizophrenia: An analysis of national databases covering the entire Korean population," International Journal of Social Psychiatry, , vol. 59(3), pages 207-216, May.
    5. Galina Besstremyannaya, 2016. "Differential Effects of Declining Rates in a Per Diem Payment System," Health Economics, John Wiley & Sons, Ltd., vol. 25(12), pages 1599-1618, December.
    6. Machnes, Yaffa, 1996. "Incentives and production of mental health services," European Journal of Political Economy, Elsevier, vol. 12(3), pages 459-466, November.

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