Toward greater equity and efficiency in rate setting: the adult residential rehabilitation programs in Massachusetts.
In FY 2001, the Massachusetts Bureau of Substance Abuse Services contracted with 64 adult-only residential rehabilitation facilities. All were paid on an undifferentiated class rate basis at $55 per resident-day. This study uses cost and other information from program-submitted Uniform Financial Reports to measure the facility-specific costs of providing residential rehabilitation services, distinguish the program and site-specific factors responsible for the facility cost differences, and then use this information to suggest alternative, more equitable, and more efficient approaches to rate setting. This analysis finds that a uniform rate structure is substantially inefficient and inequitable.
Department of Community Health and Sustainability, School of Health and Environment, University of Massachusetts, Lowell, MA 01854, USA.
A James
AJ
Lee
Matthew R
MR
Cornish
D000328:Adult; D017598:Efficiency, Organizational; D005375:Financial Audit; D006801:Humans; D008404:Massachusetts; D011907:Rate Setting and Review / Q000458:organization & administration*; D012047:Rehabilitation Centers / Q000191:economics*; D012114:Residential Treatment; D019966:Substance-Related Disorders / Q000628:therapy