TY - JOUR AU - Sindelar,Jody AU - Olmstead,Todd TI - Does the Impact of Managed Care on Substance Abuse Treatment Services Vary By Profit Status? JF - National Bureau of Economic Research Working Paper Series VL - No. 10745 PY - 2004 Y2 - September 2004 UR - http://www.nber.org/papers/w10745 L1 - http://www.nber.org/papers/w10745.pdf N1 - Author contact info: Jody L. Sindelar Yale School of Public Health Yale University School of Medicine 60 College Street, P.O. Box 208034 New Haven, CT 06520-8034 Tel: 203/785-5287 Fax: 203/785-6287 E-Mail: jody.sindelar@yale.edu AB - We extend our previous research by determining whether, and how, the impact of managed care on substance abuse treatment (SAT) services differs by facility ownership. We use the 2000 National Survey of Substance Abuse Treatment Services that contains data on service offerings and other characteristics of 10,513 SAT facilities. For each group of for-profit, not-for-profit, and public facilities, we estimate the impact of managed care (MC) on the number and types of SAT services offered (i.e., indicators of the quality of care). We use IVs to account for possible endogeneity between facilities' involvement in MC and service offerings. We find substantial differences in the magnitude and direction of the impact of MC by facility ownership. On average, MC causes for-profits to offer approximately four (out of 26) additional services, causes publics to offer approximately four fewer services, and has no impact on the number of services offered by not-for-profits. Our findings raise concerns that managed care may reduce the quality of care provided by public SAT facilities by limiting the range of services offered. On the other hand, for-profit clinics are found to increase their range of services; the societal impact of this is unclear for several reasons. ER -