Mental Health Case Management and Technical Efficiency

The purpose of the study was to assess whether Community Mental Health Centers (CMHC) operate at different levels of technical efficiency in the production of case management services. A nonparametric technique, Data Envelopement Analysis (DEA), was used to compare 39 CMHC case management programs. The CMHCs, located in Virginia, were compared on the basis of actual performance as reported in annual statistical reports. Efficient utilization of resources in the delivery of case management services was present in only six (15%) of the CMHCs. As a group, CMHCs with local inpatient services have lower technical efficiency than CMHCs without local inpatient services. The provision of local inpatient care is costly; thereby, giving CMHCs without such services a competitive edge on average technical efficiency. This suggests that the decision to provide local hospital care might be a philosophical one, rather than one that is financially driven.