Mental health's contribution to the financial performance of a utilization management program

Analysis of a national utilization management program covering approximately 3.4 million individuals from 1989 through June 1993 indicates that while only 6% of all hospitalizations were for a primary psychiatric or substance abuse diagnosis, over 44% of the program savings are accounted for by concurrent mental health utilization management. The cost of performing mental health utilization management is significantly greater than the cost of providing medical, surgical, and maternity management, but returns on investments are significantly greater for psychiatric and substance abuse than for these other diagnostic areas. Implications for health care reform inclusion of full mental health benefits are discussed.