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Unintended effects of reimbursement schedules in mental health care

Rudy Douven, Minke Remmerswaal and Ilaria Mosca

Journal of Health Economics, 2015, vol. 42, issue C, 139-150

Abstract: We evaluate the introduction of a reimbursement schedule for self-employed mental health care providers in the Netherlands in 2008. The reimbursement schedule follows a discontinuous discrete step function—once the provider has passed a treatment duration threshold the fee is flat until a next threshold is reached. We use administrative mental health care data of the total Dutch population from 2008 to 2010. We find an “efficiency” effect: on the flat part of the fee schedule providers reduce treatment duration by 2 to 7% compared to a control group. However, we also find unintended effects: providers treat patients longer to reach a next threshold and obtain a higher fee. The data shows gaps and bunches in the distribution function of treatment durations, just before and after a threshold. About 11 to 13% of treatments are shifted over a next threshold, resulting in a cost increase of approximately 7 to 9%.

Keywords: Mental health care; Provider payment; Regression discontinuity design; Policy evaluation; Regulated competition; The Netherlands (search for similar items in EconPapers)
JEL-codes: I11 I12 I18 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:42:y:2015:i:c:p:139-150

DOI: 10.1016/j.jhealeco.2015.03.008

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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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