Fiscal outcomes of the closing of central state hospital

An analysis of the costs to state government

Eric R. Wright

    Research output: Contribution to journalArticle

    7 Citations (Scopus)

    Abstract

    This study reports estimates of the preclosure and postclosure costs of mental health services for patients directly affected by the closing of Central State Hospital. The data come from state budget documents and from the billing records of the community mental health centers serving the discharged clients. On average, it cost Indiana approximately $68,347 (in 1995 dollars) to provide 12 months of state hospital care for this client cohort in fiscal year 1993. In contrast, during the first year following the closure, the average per patient cost to the state was $55,417. When clients were served exclusively in community care settings, the average annual per patient cost was $40,618. The analyses suggest that the closing reduced the costs of caring for this cohort of patients by approximately 18.9%. A significant portion of the cost savings to the state mental health budget was achieved by shifting some of the direct patient care costs to Medicaid/Medicare.

    Original languageEnglish
    Pages (from-to)262-275
    Number of pages14
    JournalJournal of Behavioral Health Services and Research
    Volume26
    Issue number3
    DOIs
    StatePublished - Aug 1999

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    State Government
    State Hospitals
    Costs and Cost Analysis
    costs
    Budgets
    mental health
    budget
    Community Mental Health Centers
    Cost Savings
    Medicaid
    Mental Health Services
    Medicare
    Patient Care
    Mental Health
    patient care
    dollar
    community
    savings
    health service

    ASJC Scopus subject areas

    • Health(social science)
    • Health Professions(all)

    Cite this

    Fiscal outcomes of the closing of central state hospital : An analysis of the costs to state government. / Wright, Eric R.

    In: Journal of Behavioral Health Services and Research, Vol. 26, No. 3, 08.1999, p. 262-275.

    Research output: Contribution to journalArticle

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