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Psychiatric managed care at a rural MEDDAC

S C Armstrong¹, K J Took

¹General Leonard Wood Army Community Hospital (GLWACH), MO.

Military Medicine

|November 1, 1993

Summary

Implementing coordinated mental health care at General Leonard Wood Army Community Hospital (GLWACH) significantly reduced costs. The Gateway to Care initiative lowered CHAMPUS net costs by nearly 50% while improving patient care access.

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Area of Science:

Healthcare Management
Mental Health Services
Military Healthcare Systems

Background:

Rising mental health expenditures at General Leonard Wood Army Community Hospital (GLWACH) presented a significant financial challenge.
In 1990, mental health services accounted for $2.7 million, representing 58% of the total CHAMPUS costs within the hospital's service area.

Purpose of the Study:

To evaluate the effectiveness of the Gateway to Care initiative in controlling mental health costs and enhancing care access.
To assess the impact of coordinated managed care on healthcare expenditures and beneficiary services at GLWACH.

Main Methods:

Initiation of the Gateway to Care program, a coordinated managed care plan.
Implementation of five key changes within GLWACH's mental health services framework.
Focus on expanding outpatient care services to mitigate inpatient admissions.

Main Results:

CHAMPUS net costs for mental health services decreased to $1.4 million in the first year of the project.
The initiative successfully provided more comprehensive care to beneficiaries.
Significant cost reduction was achieved through a strategic shift towards increased outpatient care.

Conclusions:

The Gateway to Care coordinated managed care model proved effective in reducing military healthcare costs.
Expanding outpatient mental health services is a viable strategy for controlling overall mental health expenditures.
The project demonstrated successful cost containment while improving the comprehensiveness of mental health care delivery.

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