OPEN MINDS The Behavioral Health & Social Service Industry Analyst Industry News In July 1988, the city of Philadelphia began a demonstration project to change their system for financing and managing Medicaid mental health services. The capitation project has focused on high users, the 2,000 (of 30,000) people in Philadelphia who receive more than $6,000 annually in Medicaid-reimbursed psychiatric services. The progress of the project was reported in a recent article, Philadelphias Capitation Plan for Mental Health Services, that appeared in the April, 1989 issue of . . .