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Substitution of physicians and other providers in outpatient mental health care

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  • Partha Deb
  • Ann M. Holmes

Abstract

This paper evaluates the extent to which patients may substitute physician and non‐physician outpatient mental health services in response to insurance coverage which differs by provider type. Using data from the National Medical Expenditure Survey, a semi‐flexible two‐stage demand specification is used to estimate substitution elasticities. Our results indicate that insurance coverage significantly affects the choice of provider from whom care is sought and, for individuals who seek care from both provider types, that physician and non‐physician services are substitutes. Our elasticity estimates provide a welfare economic argument supporting coverage parity of physician and non‐physician mental health services. © 1998 John Wiley & Sons, Ltd.

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  • Partha Deb & Ann M. Holmes, 1998. "Substitution of physicians and other providers in outpatient mental health care," Health Economics, John Wiley & Sons, Ltd., vol. 7(4), pages 347-361, June.
    • Handle: RePEc:wly:hlthec:v:7:y:1998:i:4:p:347-361
    DOI: 10.1002/(SICI)1099-1050(199806)7:4<347::AID-HEC354>3.0.CO;2-L
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    References listed on IDEAS

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    1. van Campen, Cretien & Woittiez, Isolde B., 2003. "Client demands and the allocation of home care in the Netherlands. A multinomial logit model of client types, care needs and referrals," Health Policy, Elsevier, vol. 64(2), pages 229-241, May.
    2. Theodore Stefos & James Burgess & Jeffrey Cohen & Laura Lehner & Eileen Moran, 2012. "Dynamics of the mental health workforce: investigating the composition of physicians and other health providers," Health Care Management Science, Springer, vol. 15(4), pages 373-384, December.
    3. Chad D. Meyerhoefer & Samuel H. Zuvekas, 2010. "New estimates of the demand for physical and mental health treatment," Health Economics, John Wiley & Sons, Ltd., vol. 19(3), pages 297-315, March.
    4. Albert Okunade & Vasudeva Murthy, 2008. "Are physician and non-physician providers of outpatient mental healthcare substitutes or complements? a conceptual clarification," Health Care Management Science, Springer, vol. 11(4), pages 393-398, December.

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