Impact of financial incentives on waiting time and length of stay in publicly funded addiction treatment Maureen T. Stewart, PhD Institute for Behavioral Health The Schneider Institutes for Health Policy The Heller School for Social Policy and Management, Brandeis University Supported by grants from NIAAA (T32 AA007567) and NIDA (5F31 DA022822-02) Acknowledgements Supported by grants from NIAAA and NIDA. Constance Horgan, ScD Deborah Garnick, ScD A. Thomas McLellan, PhD Institute for Behavioral Health 2 Background ♦ Performance contracting has been identified as a way to improve quality of AOD treatment (IOM 2006, 2008). ♦ 24+ existing pay-for-performance programs in behavioral health (Bremer, 2008). ♦ Few programs have been evaluated. Institute for Behavioral Health 3 Previous Research ♦ DE PBC → “Immediate and sustained improvements” in access to care and attendance in treatment. No evidence of selection of clients. (McLellan, et al, 2008). Institute for Behavioral Health 4 Study questions ♦ How did the PBC implemented in Delaware affect waiting time for treatment and length of stay? ♦ How did the PBC combined with NIATx affect waiting time for treatment and length of stay in Delaware? Institute for Behavioral Health 5 Design of DE performance contract ♦ Prior to PBC state used a global budget ♦ PBC implemented in 2001 for public outpatient AOD treatment (n = 5-8 programs) ♦ Performance evaluated monthly Institute for Behavioral Health 6 Contract Measures ♦ Contract includes potential penalties and bonuses ♦ Contract Measures: – Program Capacity Utilization – Client Active Participation – Client Treatment Completion Institute for Behavioral Health 7 Measure definitions & payment scheme ♦ Capacity Utilization Treatment slots filled Capacity 90% 80% 70% 60% All treatment slots Payment 100% 90% 80% 70% Institute for Behavioral Health 8 Measure definitions ♦ Active Participation: # Days Client req Pgm target 0 – 30 2 visits/wk 50% 31 – 90 4 visits/mo 60% 91 – 180 4 visits/mo 70% 181+ 2 visits/mo 80% All AP measures Bonus 1% 1% 1% 1% 1% Institute for Behavioral Health 9 Data & research design ♦ Client episode data from Delaware and Maryland, 1998 – 2006 ♦ Pre –post design with matched control group selected from Maryland data Pre Post PBC PBC+NIATx | | | | 1998 2001 2004 2006 Institute for Behavioral Health 10 Measures Studied ♦ Waiting time for treatment: Number of days between initial contact with treatment program and admission ♦ Length of stay: Number of days from admission to discharge Institute for Behavioral Health 11 Results: Change in waiting time Dependent variable: Waiting time for outpatient AOD treatment Parameter Estimate SE p value State & Admission Year (Maryland 1998 – 2001) DE PBC: 2002 – 2003 -13.27 2.36 <.0001 DE PBC + NIATx 2004– 2006 Delaware Admission 2002 – 2003 Admission 2004 – 2006 -20.04 16.68 4.16 3.31 2.22 3.97 1.30 1.17 <.0001 <.0001 0.001 0.005 Model includes controls for client demographics, state & admission yr. Adjusted for clustering of clients within programs. n = 21,351 Institute for Behavioral Health 12 Results: Change in LOS over time Dependent variable: LOS in outpatient AOD treatment Parameter Estimate SE p value State & Admission Year (Maryland 1998 – 2001) DE PBC: 2002 – 2003 14.80 9.35 0.11 DE PBC + NIATx 2004– 2006 Delaware 12.44 7.32 -19.31 7.70 0.09 0.01 Admission 2002 – 2003 Admission 2004 – 2006 -11.70 3.01 -5.71 3.34 0.00 0.09 Model includes controls for client demographics, state & admission yr. Adjusted for clustering of clients within programs. n = 21,351 Institute for Behavioral Health 13 Policy Implications ♦ Improvements are associated with the performance contract. ♦ Additional improvements occurred with a combination of financial incentives and quality improvement tools. Institute for Behavioral Health 14 Policy Implications ♦ Some important characteristics of this program appear to be: – Timely feedback – Significant penalties / rewards – Provider buy-in – SSA determination and willingness to lose providers Institute for Behavioral Health 15 Future research ♦ How were client outcomes affected? ♦ How did the type and frequency of services clients received change? ♦ How did clinician turnover change? Institute for Behavioral Health 16 Thank you Contact information: Maureen Stewart mstewart @ brandeis.edu Institute for Behavioral Health 17