Supply of mental health practices after prescriptive authority expansion for psychologists

Angela Shoulders and Alicia Plemmons

Contemporary Economic Policy, 2025, vol. 43, issue 1, 116-134

Abstract: The prescription‐privileges movement has advocated for state laws enabling trained psychologists to prescribe psychotropic medication. We examine the impact of these laws on healthcare access and outcomes. Using staggered difference‐in‐differences analysis and Data Axle data, we estimate the number of new mental health establishments per 100,000 people after policy implementation. Using CDC data, we analyze the policy's impact on suicide rates. We find the policy increased the number of psychology and counseling practices without decreasing the number of psychiatric practices, implying that these practices are complements rather than substitutes. Quality held steady, with no notable change in the suicide rate.

Date: 2025
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https://doi.org/10.1111/coep.12643

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Persistent link: https://EconPapers.repec.org/RePEc:bla:coecpo:v:43:y:2025:i:1:p:116-134

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