How does managed care organize, provide and fund mental health services, and what are behavioral health carve-outs?
Commercial employers and the public sector often rely on managed care organizations that specialize in administering mental health and/or substance abuse services. These specialized organizations are called behavioral health organizations (BHOs) or mental health carve-outs (MHCOs). More than 72 percent of insured Americans are enrolled in health plans that use these organizations to administer mental health services. Advantages of behavioral health organizations may include a specialized mental health treatment, reduced spending, a broader array of treatments, greater numbers and varieties of mental health providers, and a commitment to serve the severely mentally ill. Some concern exists that carve-out organizations increase barriers to coordination with physical health care and may result in shortened inpatient stays. Other advantages to carving in or integrating mental and physical health are a reduction of barriers due to stigma and a greater opportunity for overall health savings.
Related Questions
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