NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by robert cole

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Working Papers

October 1995Evaluating Mental Health Capitation Treatment: Lessons from Panel Data
with Debra Sabatini Dwyer, Olivia S. Mitchell, Sylvia K. Reed: w5297
The paper evaluates a capitation-financed system of mental health services delivery developed in Rochester, New York. Cost/benefit analysis of the treatment program is implemented on three years of data using program evaluation techniques. Patient outcomes are compared across randomly assigned study groups as well as across enrollment status. The analysis implements difference-in-difference econometric techniques recently developed in the labor economics literature to control for potentially non-random attrition as well as selective non-compliance. We find that patients enrolled in the capitation program do experience significantly lower costs without becoming sicker, even after controlling for attrition and sample selection.

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