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The Economics of Long‐Term Care for the Mentally Ill
Author(s) -
Frisman Linda K.,
McGuire Thomas G.
Publication year - 1989
Publication title -
journal of social issues
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.618
H-Index - 122
eISSN - 1540-4560
pISSN - 0022-4537
DOI - 10.1111/j.1540-4560.1989.tb01559.x
Subject(s) - reimbursement , mentally ill , incentive , term (time) , long term care , ideal (ethics) , state (computer science) , nursing homes , public economics , medicine , psychiatry , nursing , business , psychology , actuarial science , economics , political science , economic growth , mental illness , health care , microeconomics , mental health , law , physics , quantum mechanics , algorithm , computer science
Systems of long‐term care for the mentally ill have been largely shaped by financing and reimbursement, rather than sound treatment principles. An undue emphasis on institutional care and the lack of coordination among providers can be attributed to perverse economic incentives and multiple payers. This article argues that, because of the special nature of long‐term psychiatric disabilities, there is a predictable underutilization of long‐term psychiatric services. It considers three types of settings: state hospitals, nursing homes, and community care, discussing current financing mechanisms in each. Finally, it presents characteristics of ideal systems and examines several proposed financing models according to these characteristics.