Performance contracting: the Colorado model.

Area of Science:

• Health Services Research
• Public Administration
• Mental Health Policy

Background:

• Community mental health centers (CMHCA) require operational flexibility.
• State divisions of mental health (DMH) need to ensure accountability and control.
• Traditional funding models may limit innovation in mental healthcare delivery.

Purpose of the Study:

• To analyze the development and impact of a performance contracting system.
• To examine the negotiation process between CMHCA and DMH.
• To evaluate the balance between entrepreneurial freedom and state oversight.

Main Methods:

• Qualitative analysis of the negotiation process.
• Review of performance contracting agreements.
• Assessment of CMHCA operational changes post-implementation.

Main Results:

• A performance contracting system was successfully negotiated.
• The system allows for entrepreneurial initiatives within CMHCAs.
• DMH maintains adequate oversight and control mechanisms.

Conclusions:

• Performance contracting can foster innovation in community mental health.
• Collaborative negotiation is key to balancing autonomy and control.
• This model offers a viable framework for public-private partnerships in mental health.