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Managed care and service capacity development in a public mental health system.

Developing a continuum of care is considered to be one of the first steps in the process of implementing managed care strategies. This study summarizes the results of a final survey that focused on the ability of Colorado community mental health centers (CMHCs) to build service capacity and create new programs as a result of Medicaid capitation financing. Capitated agencies, compared to those that remained fee-for-service during the study period, reported a much greater ability to develop services as a result of capitation. Decreases in services were minimal for all agencies. Some differences in managed care organizational models were noted, as were differences in the speed of implementation. Gaps in some services still remain. These findings point to important program implementation issues for publicly funded managed care.

Capitation Fee↗

LTC financing uncapped. Capital begins to flow again. Interview by Jim Bowe.

For those who are patient and know where to look, financing for nursing homes shows signs of rebounding. Capital is slowly but surely making its way back into the long-term care industry after several lean years that forced many operators to put their expansion plans on hold while they waited for more favorable lending conditions. To get a fix on lenders' willingness to finance nursing homes, Contemporary Long Term Care recently interviewed Gary Veloric of J.G. Wentworth and Company, Inc., Philadelphia. Veloric, who is president and CEO of the merchant bank specializing in long-term care financing, has raised more that one-half billion dollars over the last eight years for nursing home and retirement housing operators. The comments on the following pages are excerpts from that discussion.

Capital Financing↗