The financial impact on community mental health centers of capitated contracts with medicaid: The Utah Prepaid Mental Health Plan

Under the Utah Prepaid Mental Health Plan, three of the eleven Community Mental Health Centers in Utah signed capitation contracts with the state Medicaid program. The capitated Centers initially accepted the risk for inpatient care, with the risk later being extended to also include outpatient services. This study contrasts the financial experiences of the capitated Centers and five noncontracting Centers. While various patterns of financial management are evident in the data, it appears that the decision to contract had, at worst, a neutral effect on overall financial performance. Managed care programs with different designs may have different results.