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Independent Assessment of New Mexico's Behavioral Health Program

March 2007

New Mexico Medical Review Association
Lewin contact: Joel Menges

This report conveys the findings of the Independent Assessment of the access, quality, and cost-effectiveness of health care services delivered under New Mexico’s Behavioral Health Collaborative. This report fulfills the requirement of the Centers for Medicare and Medicaid Services (CMS) that state Medicaid authorities arrange for an independent assessment of a state’s 1915(b) waiver programs. The Lewin Group has reviewed the access- and quality-related state contractual requirements, ValueOptions’ proposal to the State of New Mexico, Managed Care Audit, ValueOptions’ provider network, selected reports, provider satisfaction survey, national performance standards and MHSIP performance, ValueOptions’ Quality Management Program, and various financial reports. Based on the comprehensive review of submitted reports and data related to consumer and provider satisfaction, the program is off to a strong start in some respects and a challenging start in others. ValueOptions and the Interagency Behavioral Health Purchasing Collaborative have implemented a behavioral health system that is designed to not only provide access to quality health services, but also integrate other non-medical health member needs. The State of New Mexico has set extensive and specific requirements for performance, which ValueOptions has already met or appears to be making significant progress towards. New Mexico’s behavioral health system meets CMS guidelines and requirements in terms of access, quality, and cost-effectiveness.

Client Area: State and Local Governments
Expertise Area: Medicaid and CHIP, Mental Health and Substance Abuse

Comparisons of Client Outcomes across Cities: Does Case Mix Matter?

October 2002

DHHS, Center for Substance Abuse Treatment

This analysis aims to compare the performance of the treatment systems located within cities in different geographic regions, an approach to performance measurement and outcomes monitoring that has not previously been done. Using the CSAT Target Cities multi-site data set, the goals of this analysis were to (1) identify and operationalize standardized performance measures that are applicable across treatment systems within cities; (2) illlustrate a type of performance measurement analysis that can be conducted at the treatment system level; (3) assess the relative performance of the treatment systems/cities using the identified performance measures; and (4) highlight the uses, benefits, constraints and data requirements for system-level performance measurement monitoring and comparisons.

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

Cost Effectiveness and Cost Benefit Analysis of Substance Abuse Treatment: A Literature Review

June 2002

DHHS, Center for Substance Abuse Treatment

This literature review summarizes the major findings from books, published articles, research and evaluation studies, and government documents (including "Web" publications) published since 1980, which focus on the cost effectiveness and cost benefits of substance abuse treatment. Cost effectiveness and cost benefit studies play an important role in evaluating existing and alternative substance abuse approaches and in assessing new treatment methods. Evaluating the outcomes and costs of treatment is necessary in order to determine how to more efficiently allocate scarce resources. This document is intended to assist policymakers, researchers/evaluators, and treatment providers interested in this field to identify and acquire evidence-based information specific to their interests. This review also explores trends and areas where there are gaps in the literature.

Client Area: Federal Government
Expertise Area: Chronic Disease / Cost of Illness, Mental Health and Substance Abuse

Cost Effectiveness and Cost Benefit Analysis of Substance Abuse Treatment: An Annotated Bibliography

June 2002

DHHS, Center for Substance Abuse Treatment

This bibliography lists books, published articles and research/evaluation studies, and government documents (including "Web" publications) published since 1980 that focus on the costs of substance abuse treatment, methods for estimating the costs of treatment, and studies of the cost effectiveness and cost benefits of substance abuse treatment. This document also identifies trends and areas where there are gaps in the literature. A companion document, Cost Effectiveness and Cost Benefit Analysis of Substance Abuse Treatment: A Literature Review, synthesizes the major findings from the reports and studies focusing on the cost effectiveness and cost benefits of substance abuse treatment identified in this bibliography.

Client Area: Federal Government
Expertise Area: Chronic Disease / Cost of Illness, Mental Health and Substance Abuse

The Economic Costs of Drug Abuse in the United States: 1992-1998

September 2001

Office of National Drug Control Policy (ONDCP)

This report, developed for The Office of National Drug Control Policy, presents new estimates of the societal cost of drug abuse. The most recent previous estimates of drug abuse related costs are for 1995. In addition, the report provides annual estimates for 1992 through 1998 and projections for 1999 and 2000 that are consistently developed, so that trends in the overall societal cost and in component costs of drug abuse can be evaluated. In developing the report, p articular emphasis was placed on estimating the health-related consequences and costs of illicit drug abuse, including the costs of substance abuse treatment for comorbid health problems. Other major economic costs of drug abuse estimated include: premature mortality, victim loss from drug-related property and violent crime (and child abuse), social welfare services, criminal justice expenditures, workplace and household productivity impacts, and "crime career" costs.

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

Do Larger Residential Service Delivery Units Have Lower Costs?

July 2001

DHHS, Center for Substance Abuse Treatment

This analytic report presents the results of an analysis of the relationship between the size of providers and the cost of delivering treatment services. It was found that large providers tend to have lower costs per unit of service than small providers, although it appears that this may be partially due to delivery of lower intensity services, with uncertain implications for the outcomes of care.

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

Screening for Mental Illness in Nursing Facility Applicants: Understanding Federal Requirements

July 2001

DHHS, Substance Abuse and Mental Health Services Administration (SAMHSA)
Lewin contact: Karen Linkins

Medicaid law and regulations require States to have a Preadmission Screening and Resident Review (PASRR) program to determine whether nursing facility applicants and residents require nursing facility services and specialized mental health care. This paper reviews the literature concerning PASRR and mental health services for persons in nursing facilities. It details the Federal laws and regulations concerning PASRR, reviews key policy issues from the literature, clarifies frequently asked questions regarding the process, and identifies additional policy questions to be studied.

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

The Cost and Components of Substance Abuse Treatment

July 2001

DHHS, Center for Substance Abuse Treatment

This document introduces a new tool available to study the costs of substance abuse treatment: the Center for Substance Abuse Treatment (CSAT) Substance Abuse Treatment Cost Allocation and Analysis Template (SATCAAT). The particular purpose and strength of the SATCAAT is the development of cost estimates for defined components and units of service that combine (often in different proportions by different providers) to constitute substance abuse treatment. The SATCAAT should be considered an example of an important approach to studying the costs of substance abuse treatment. The method is described and actual data are presented from a sample of providers in order to demonstrate the output and potential use.

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

Administering Generous Mental Health Benefits: Opinions of Employers

January 2001

DHHS, Center for Mental Health Services

This report synthesizes the experiences of seven large employers that offer generous mental health benefits to their employees. Representatives of these employers shared their views and experiences in a one-day focus group.

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

Updating Estimates of the Economic Costs of Alcohol Abuse in the United States: Estimates, Update Methods and Data

December 2000

National Institute on Alcohol Abuse and Alcoholism

The economic costs of alcohol abuse are estimated to have been $184.6 billion in 1998. This estimate has been developed by making a series of adjustments to the most recent comprehensive estimates that attempt to account for changes expected to affect the estimates. This new estimate represents a 25 percent increase (3.8 percent per year on average) from the $148 billion comprehensive estimate developed previously for 1992. The current update has developed new estimates for 20 major cost components and has applied various combinations of 18 different specific adjustment factors to account for 1992 to 1998 changes in, e.g.: incidence/prevalence of selected alcohol-specific consequences; population; general prices; and worker compensation (wage rates).

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

Do the Benefits of More Intensive Substance Abuse Treatment Offset the Costs?

September 2000

DHHS, Center for Substance Abuse Treatment

In this analysis, we estimated the relationship between treatment intensity and post-treatment societal costs associated with substance abuse treatment clients. We focused on the impact of length of stay and individual and group counseling sessions on crime-related costs (including criminal justice), health care costs, welfare payments, and client earnings. Societal benefits were measured by the estimated reductions in post-treatment costs and welfare payments or estimated increases in earnings and taxes with each additional day of treatment or hour of counseling. The additional benefits from increasing length of stay or counseling were compared with the additional cost of providing such care. The purpose of the analysis was to identify the value to society of varying the length of stay or hours of counseling for clients who received substance abuse treatment.

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

The Economic Cost of Mental Illness, 1992

May 2000

National Institute on Drug Abuse

The aim of this study is to identify and quantify the adverse impacts of mental illness and sum together the magnitude of these consequences using economic values—in dollars. This report estimates the direct economic impact of mental illness for 1992 and for 1995.

Client Area: Federal Government
Expertise Area: Chronic Disease / Cost of Illness, Mental Health and Substance Abuse

Contracting for Public Mental Health Services: Opinions of Managed Behavioral Health Care Organizations

April 2000

DHHS, Substance Abuse and Mental Health Services Administration (SAMHSA)

This report synthesizes the collective experiences of four managed behavioral health care organizations (MBHOs) that hold public sector managed care carve-out contracts. The views presented are those of representatives of the MBHOs who participated in a daylong focus group meeting.

Client Area: Federal Government
Expertise Area: Medicaid and CHIP, Mental Health and Substance Abuse

School-Based Mental Health Services under Medicaid Managed Care

April 2000

DHHS, Center for Mental Health Services

This study sought to learn how schools and providers of school-based mental health services work with Medicaid managed care organizations. To that end, it observed the experiences of several States and local communities in providing for the inclusion of school-based mental health services in managed care contracts. The study also explored options and models for including school-based mental health services within managed care; examined financing and reimbursement issues that might affect the viability and expansion of such services; and assessed alternative ways to maintain and expand school-based mental health services within the managed care environment.

Client Area: Federal Government
Expertise Area: Medicaid and CHIP, Mental Health and Substance Abuse

Using Case Mix Adjustment Methods to Measure the Effectiveness of Substance Abuse Treatment: Three Examples Using Client Employment Outcomes

March 2000

DHHS, Center for Substance Abuse Treatment

The increasing emphasis on fiscal responsibility and accountability has led the Federal government, States, and managed care entities to increase efforts to identify cost-effective health care providers. This report addresses some of the potential challenges of measuring the effectiveness of substance abuse treatment across providers and highlights the importance of controlling for differences in the characteristics of clients treated by each provider (i.e., provider case mix).

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

Access and Utilization of New Antidepressant and Antipsychotic Medications

January 2000

DHHS, Office of the Assistant Secretary for Planning and Evaluation (ASPE)

This report contains the results of a study to identify, document, and assess the factors that affect access to and utilization of new generation antidepressant and antipsychotic medications. Three primary questions guided the assessment: What are the formal policies and procedures implemented by health care payers that affect consumer access to and utilization of psychiatric medications? Are these policies and procedures different for psychiatric medications than for other medication classes? How does the implementation of these policies and procedures affect access to and utilization of these medications? Do policies, procedures, and modes of implementation (regardless of whether they differ for mental health) create barriers to adequate mental health care?

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

The Costs and Benefits of Substance Abuse Treatment: Findings from the National Treatment Improvement Evaluation Study (NTIES)

August 1999

DHHS, Center for Substance Abuse Treatment

The purpose of this study is to quantify the costs and benefits of alcohol and drug abuse treatment and the resulting economic benefits to society, using data from the National Treatment Improvement Evaluation Study (NTIES). Lewin constructed estimates of treatment costs for each of the modalities and across all modalities. To measure benefits, Lewin used data from NTIES to estimate the crime-related and health care costs associated with substance abusers and the income of substance abusers in the periods before and after treatment. The difference between pre-treatment (baseline) costs and post-treatment (follow-up) costs provides an estimate of the economic impact of substance abuse treatment. This "treatment effect" is viewed as a benefit to the extent that it represents avoided crime-related costs, health-care costs, or welfare payments or increased earnings. In other words, the benefits of treatment are equal to the additional costs that would have been incurred and the additional earnings that would not have been realized in the absence of treatment.

Client Area: Federal Government
Expertise Area: Mental Health and Substance Abuse

Economic Cost of Alcohol and Drug Abuse in the United States, 1992

May 1998

National Insitute on Drug Abuse, National Institute on Alcohol Abuse and Alcoholism

The Lewin Group developed estimates of the costs of drug and alcohol abuse in 1992 for The National Institute on Drug Abuse (NIDA) and the National Institute on Alcohol Abuse and Alcoholism (NIAAA). The study estimated the economic cost to society from alcohol and drug abuse at $246 billion in 1992. Alcohol abuse and alcoholism cost an estimated $148 billion, while drug abuse and dependence cost an estimated $98 billion.

Client Area: Federal Government
Expertise Area: Chronic Disease / Cost of Illness, Mental Health and Substance Abuse

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