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Journal of Public Health Management & Practice:
doi: 10.1097/01.PHH.0000324568.18275.2d
Commentary

Toward Greater Equity and Efficiency in Rate Setting: The Adult Residential Rehabilitation Programs in Massachusetts

Lee, A. James PhD; Cornish, Matthew R. MA, LADC I

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Abstract

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.

© 2008 Lippincott Williams & Wilkins, Inc.

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