Does Cost Savings = Quality?

A few weeks ago, we covered a report issued by the Idaho Office of Performance Evaluations which found that in the two years since the Idaho Medicaid program moved mental health services to managed care, the program reduced spending on an annualized basis by approximately $28 million, or approximately 20%. The bulk of the savings came from reductions in psychosocial rehabilitation services (PSR) (see Idaho Medicaid Managed Behavioral Health Carve-Out Reduced Community-Based Costs).

The report noted that since the program’s implementation, total spending dropped from $22.3 million in July to August 2013, to $17.7 million . . .