Provider-sponsored networks in public sector behavioral health

Numerous behavioral health and social service providers (primarily not-for-profit community mental health and chemical dependency treatment centers) have been joining forces on a local and regional basis to create their own managed care contracting entities, referred to as provider-sponsored networks. Even though these networks are emerging as an alternative managed care model, little is known about them. This descriptive survey provides baseline information about the status of these networks. Using a structured interview questionnaire, a random sample of 15 networks from 12 states was surveyed. Participants were asked about various organizational characteristics of networks, reasons for formation, managed care readiness, obstacles to success, differential value of networks, and recommendations for success. Findings suggest that regional networks are making gradual progress, although many of the assumed benefits have been elusive.