Skip to main content
Top
Published in: Implementation Science 1/2013

Open Access 01-12-2013 | Research

Directed funding to address under-provision of treatment for substance use disorders: a quantitative study

Authors: Austin B Frakt, Jodie Trafton, Amy Wallace, Matthew Neuman, Steven Pizer

Published in: Implementation Science | Issue 1/2013

Login to get access

Abstract

Background

Substance use disorders (SUDs) are a substantial problem in the United States (U.S.), affecting far more people than receive treatment. This is true broadly and within the U.S. military veteran population, which is our focus. To increase funding for treatment, the Veterans Health Administration (VA) has implemented several initiatives over the past decade to direct funds toward SUD treatment, supplementing the unrestricted funds VA medical centers receive. We study the ‘flypaper effect’ or the extent to which these directed funds have actually increased SUD treatment spending.

Methods

The study sample included all VA facilities and used observational data spanning years 2002 to 2010. Data were analyzed with a fixed effects, ordinary least squares specification with monetized workload as the dependent variable and funding dedicated to SUD specialty clinics the key dependent variable, controlling for unrestricted funding.

Results

We observed different effects of dedicated SUD specialty clinic funding over the period 2002 to 2008 versus 2009 to 2010. In the earlier period, there is no evidence of a significant portion of the dedicated funding sticking to its target. In the later period, a substantial proportion—38% in 2009 and 61% in 2010—of funding dedicated to SUD specialty clinics did translate into increased medical center spending for SUD treatment. In comparison, only five cents of every dollar of unrestricted funding is spent on SUD treatment.

Conclusions

Relative to unrestricted funding, dedicated funding for SUD treatment was much more effective in increasing workload, but only in years 2009 and 2010. The differences in those years relative to prior ones may be due to the observed management focus on SUD and SUD-related treatment in the later years. If true, this suggests that in a centrally directed healthcare organization such as the VA, funding dedicated to a service is a necessary, but not sufficient condition for increasing resources expended for that service.
Appendix
Available only for authorised users
Literature
1.
go back to reference Substance Abuse and Mental Health Services Administration: Results from the 2010 national survey on drug use and health: national findings. Office of Applied Studies; NSDUH Series H-41, HHS Publication No. SMA 11–4658. 2011, Rockville: HHS Substance Abuse and Mental Health Services Administration: Results from the 2010 national survey on drug use and health: national findings. Office of Applied Studies; NSDUH Series H-41, HHS Publication No. SMA 11–4658. 2011, Rockville: HHS
2.
go back to reference Ettner SL, Huang D, Evans E, Ash DR, Hardy M, Jourabchi M, Hser YI: Benefit–cost in the California treatment outcome project: does substance abuse treatment ‘pay for itself’?. Health Serv Res. 2006, 41: 192-213. 10.1111/j.1475-6773.2005.00466.x.CrossRefPubMedPubMedCentral Ettner SL, Huang D, Evans E, Ash DR, Hardy M, Jourabchi M, Hser YI: Benefit–cost in the California treatment outcome project: does substance abuse treatment ‘pay for itself’?. Health Serv Res. 2006, 41: 192-213. 10.1111/j.1475-6773.2005.00466.x.CrossRefPubMedPubMedCentral
3.
go back to reference Dutra L, Stathopoulou G, Basden S, Leyro T, Powers M, Otto M: A meta-analytic review of psychosocial interventions for substance use disorders. Am J Psychiatry. 2008, 165: 179-187. 10.1176/appi.ajp.2007.06111851.CrossRefPubMed Dutra L, Stathopoulou G, Basden S, Leyro T, Powers M, Otto M: A meta-analytic review of psychosocial interventions for substance use disorders. Am J Psychiatry. 2008, 165: 179-187. 10.1176/appi.ajp.2007.06111851.CrossRefPubMed
4.
go back to reference Wagner TH, Harris KM, Federman B, Dai L, Luna Y, Humphreys K: Prevalence of drug, alcohol and cigarette use among veterans and comparable non-veterans from the national survey on drug use and health. Psychological Services. 2007, 4: 149-157.CrossRef Wagner TH, Harris KM, Federman B, Dai L, Luna Y, Humphreys K: Prevalence of drug, alcohol and cigarette use among veterans and comparable non-veterans from the national survey on drug use and health. Psychological Services. 2007, 4: 149-157.CrossRef
5.
go back to reference Bouchery EE, Harwood H, Sacks J, Simon C, Brewer R: Economic costs of excessive alcohol consumption in the U.S 2006. Am J Prev Med. 2011, 41: 516-524. 10.1016/j.amepre.2011.06.045.CrossRefPubMed Bouchery EE, Harwood H, Sacks J, Simon C, Brewer R: Economic costs of excessive alcohol consumption in the U.S 2006. Am J Prev Med. 2011, 41: 516-524. 10.1016/j.amepre.2011.06.045.CrossRefPubMed
6.
go back to reference Harwood H: Updating estimates of the economic costs of alcohol abuse in the United States: estimates, updated methods, and data. Report prepared for the National Institute on Alcohol Abuse and Alcoholism. 2000 Harwood H: Updating estimates of the economic costs of alcohol abuse in the United States: estimates, updated methods, and data. Report prepared for the National Institute on Alcohol Abuse and Alcoholism. 2000
7.
go back to reference Holder HD: Alcoholism treatment and potential health care cost saving. Med Care. 1987, 25: 52-71. 10.1097/00005650-198701000-00007.CrossRefPubMed Holder HD: Alcoholism treatment and potential health care cost saving. Med Care. 1987, 25: 52-71. 10.1097/00005650-198701000-00007.CrossRefPubMed
8.
go back to reference Holder HD, Blose JO: Alcoholism treatment and total health care utilization and costs, A four-year longitudinal analysis of federal employees. JAMA. 1986, 256: 1456-1460. 10.1001/jama.1986.03380110062027.CrossRefPubMed Holder HD, Blose JO: Alcoholism treatment and total health care utilization and costs, A four-year longitudinal analysis of federal employees. JAMA. 1986, 256: 1456-1460. 10.1001/jama.1986.03380110062027.CrossRefPubMed
9.
go back to reference Parthasarathy S, Weisner C, Hu TW, Moore C: Association of outpatient alcohol and drug treatment with health care utilization and cost: revisiting the offset hypothesis. J Stud Alcohol. 2001, 62: 89-97.CrossRefPubMed Parthasarathy S, Weisner C, Hu TW, Moore C: Association of outpatient alcohol and drug treatment with health care utilization and cost: revisiting the offset hypothesis. J Stud Alcohol. 2001, 62: 89-97.CrossRefPubMed
10.
go back to reference McCollister KE, French MT: The relative contribution of outcome domains in the total economic benefit of addiction interventions: a review of first findings. Addiction. 2003, 98: 1647-1659. 10.1111/j.1360-0443.2003.00541.x.CrossRefPubMed McCollister KE, French MT: The relative contribution of outcome domains in the total economic benefit of addiction interventions: a review of first findings. Addiction. 2003, 98: 1647-1659. 10.1111/j.1360-0443.2003.00541.x.CrossRefPubMed
11.
go back to reference Basu A, Paltiel D, Pollack H: Social costs of robbery and the cost-effectiveness of substance abuse treatment. Health Econ. 2008, 17: 927-946. 10.1002/hec.1305.CrossRefPubMedPubMedCentral Basu A, Paltiel D, Pollack H: Social costs of robbery and the cost-effectiveness of substance abuse treatment. Health Econ. 2008, 17: 927-946. 10.1002/hec.1305.CrossRefPubMedPubMedCentral
12.
go back to reference Wickizer T, Mancuso D, Huber A: Evaluation of an innovative medicaid health policy initiative to expand substance abuse treatment in Washington State. Medical Care Research and Review. 2012, 69: 540-559. 10.1177/1077558712447075.CrossRefPubMed Wickizer T, Mancuso D, Huber A: Evaluation of an innovative medicaid health policy initiative to expand substance abuse treatment in Washington State. Medical Care Research and Review. 2012, 69: 540-559. 10.1177/1077558712447075.CrossRefPubMed
13.
go back to reference Humphreys K, Wagner T, Gage M: If substance use disorder treatment more than offsets its costs, why don't more medical centers want to provide it? A budget impact analysis in the Veterans Health Administration. J Subst Abuse Treat. 2011, 41: 243-251. 10.1016/j.jsat.2011.04.006.CrossRefPubMed Humphreys K, Wagner T, Gage M: If substance use disorder treatment more than offsets its costs, why don't more medical centers want to provide it? A budget impact analysis in the Veterans Health Administration. J Subst Abuse Treat. 2011, 41: 243-251. 10.1016/j.jsat.2011.04.006.CrossRefPubMed
14.
go back to reference National Center on Addiction and Substance Abuse (CASA): Missed Opportunity: CASA National Survey of Primary Care Physicians and Patients on Substance Abuse. 2000, New York: Columbia University, CASA National Center on Addiction and Substance Abuse (CASA): Missed Opportunity: CASA National Survey of Primary Care Physicians and Patients on Substance Abuse. 2000, New York: Columbia University, CASA
15.
16.
go back to reference Mark TL, Levit KR, Vandivort-Warren R, Buck JA, Coffey RM: Changes in US spending on mental health and substance abuse treatment, 1986–2005, and implications for policy. Health Aff. 2011, 30: 284-292. 10.1377/hlthaff.2010.0765.CrossRef Mark TL, Levit KR, Vandivort-Warren R, Buck JA, Coffey RM: Changes in US spending on mental health and substance abuse treatment, 1986–2005, and implications for policy. Health Aff. 2011, 30: 284-292. 10.1377/hlthaff.2010.0765.CrossRef
17.
go back to reference Inman R: The Flypaper Effect. December 2008, Cambridge: National Bureau of Economic ResearchCrossRef Inman R: The Flypaper Effect. December 2008, Cambridge: National Bureau of Economic ResearchCrossRef
18.
go back to reference Huber JH, Pope GC, Dayhoff DA: National and state spending on specialty alcoholism treatment: 1979 and 1989. Am J Public Health. 1994, 84: 1662-1666. 10.2105/AJPH.84.10.1662.CrossRefPubMedPubMedCentral Huber JH, Pope GC, Dayhoff DA: National and state spending on specialty alcoholism treatment: 1979 and 1989. Am J Public Health. 1994, 84: 1662-1666. 10.2105/AJPH.84.10.1662.CrossRefPubMedPubMedCentral
19.
go back to reference Gamkhar S, Sim S-C: The impact of federal alcohol and drug abuse block grants on state and local government substance abuse program expenditure: the role of federal oversight. J Health Polit Policy Law. 2001, 26: 1261-1290. 10.1215/03616878-26-6-1261.CrossRefPubMed Gamkhar S, Sim S-C: The impact of federal alcohol and drug abuse block grants on state and local government substance abuse program expenditure: the role of federal oversight. J Health Polit Policy Law. 2001, 26: 1261-1290. 10.1215/03616878-26-6-1261.CrossRefPubMed
20.
go back to reference Jacobsen K, McGuire TG: Federal block grants and state spending: the alcohol, drug abuse and mental health block grant and state agency behavior. J Health Polit Policy Law. 1996, 21: 753-770.CrossRefPubMed Jacobsen K, McGuire TG: Federal block grants and state spending: the alcohol, drug abuse and mental health block grant and state agency behavior. J Health Polit Policy Law. 1996, 21: 753-770.CrossRefPubMed
21.
go back to reference Ma CA, McGuire TG, Weng Y: Monitoring and enforcement in federal alcohol and drug abuse block grants. The Economics of Health Care in Asia-Pacific Countries. 2002, Taiwan: Institute of Economics, Academia Sinica, 257-270. Ma CA, McGuire TG, Weng Y: Monitoring and enforcement in federal alcohol and drug abuse block grants. The Economics of Health Care in Asia-Pacific Countries. 2002, Taiwan: Institute of Economics, Academia Sinica, 257-270.
22.
go back to reference Ekstrand L: VA health care: preliminary information on resources allocated for mental health strategic plan initiatives. Testimony before the Subcommittee on Health, Committee on Veterans’ Affairs, House of Representatives. United States General Accountability Office, [http://www.gao.gov/assets/120/114967.html] Ekstrand L: VA health care: preliminary information on resources allocated for mental health strategic plan initiatives. Testimony before the Subcommittee on Health, Committee on Veterans’ Affairs, House of Representatives. United States General Accountability Office, [http://​www.​gao.​gov/​assets/​120/​114967.​html]
24.
go back to reference US Government Accountability Office: Spending for Mental Health Strategic Plan Initiatives Was Substantially Less Than Planned. November, 2006, Washington DC: GAO US Government Accountability Office: Spending for Mental Health Strategic Plan Initiatives Was Substantially Less Than Planned. November, 2006, Washington DC: GAO
25.
go back to reference Newey WK, West KD: A simple, positive semi-definite, heteroskedasticity and autocorrelation consistent covariance matrix. Econometrica. 1987, 55: 703-708. 10.2307/1913610.CrossRef Newey WK, West KD: A simple, positive semi-definite, heteroskedasticity and autocorrelation consistent covariance matrix. Econometrica. 1987, 55: 703-708. 10.2307/1913610.CrossRef
26.
go back to reference StataCorp: Stata Statistical Software: Release 10. 2007, College Station, TX: StataCorp LP StataCorp: Stata Statistical Software: Release 10. 2007, College Station, TX: StataCorp LP
27.
go back to reference Harris A, Reeder R, Ellerbe L, Bowe T: Are VHA administrative location codes valid indicators of specialty substance use disorder treatment?. J Rehabil Res Dev. 2010, 47: 699-708. 10.1682/JRRD.2009.07.0106.CrossRefPubMed Harris A, Reeder R, Ellerbe L, Bowe T: Are VHA administrative location codes valid indicators of specialty substance use disorder treatment?. J Rehabil Res Dev. 2010, 47: 699-708. 10.1682/JRRD.2009.07.0106.CrossRefPubMed
28.
go back to reference Humphreys K, Horst D: The Department of Veterans Affairs Substance Abuse Treatment System: Results of the 2000 Drug and Alcohol Program Survey. 2001, Palo Alto: Program Evaluation and Resource Center Humphreys K, Horst D: The Department of Veterans Affairs Substance Abuse Treatment System: Results of the 2000 Drug and Alcohol Program Survey. 2001, Palo Alto: Program Evaluation and Resource Center
29.
go back to reference Tracy S, Trafton J, Humphreys K: The Department of Veterans Affairs Substance Abuse Treatment System: Results of the 2003 Drug and Alcohol Program Survey. 2004, Palo Alto: Program Evaluation and Resource Center Tracy S, Trafton J, Humphreys K: The Department of Veterans Affairs Substance Abuse Treatment System: Results of the 2003 Drug and Alcohol Program Survey. 2004, Palo Alto: Program Evaluation and Resource Center
30.
go back to reference Tracy SW, Morales A, Trafton JA: The Department of Veterans Affairs Substance Abuse Treatment System: Results of the 2006 Drug and Alcohol Program Survey. 2007, Palo Alto: Program Evaluation and Resource Center Tracy SW, Morales A, Trafton JA: The Department of Veterans Affairs Substance Abuse Treatment System: Results of the 2006 Drug and Alcohol Program Survey. 2007, Palo Alto: Program Evaluation and Resource Center
31.
go back to reference Tracy S, Tavakoli S, Stolpner S, Trafton J: The Department of Veterans Affairs Substance use disorder treatment system: Results of the 2008 Drug and Alcohol Program Survey. 2009, Palo Alto: Program Evaluation and Resource Center Tracy S, Tavakoli S, Stolpner S, Trafton J: The Department of Veterans Affairs Substance use disorder treatment system: Results of the 2008 Drug and Alcohol Program Survey. 2009, Palo Alto: Program Evaluation and Resource Center
32.
go back to reference Tracy S, Stolpner S, Rogers J, Tavakoli S, Trafton J: The Department of Veterans Affairs Substance use disorder treatment system: Results of the 2010 Drug and Alcohol Program Survey. 2011, Palo Alto: Program Evaluation and Resource Center Tracy S, Stolpner S, Rogers J, Tavakoli S, Trafton J: The Department of Veterans Affairs Substance use disorder treatment system: Results of the 2010 Drug and Alcohol Program Survey. 2011, Palo Alto: Program Evaluation and Resource Center
33.
go back to reference Smith M, Cheng A: A Guide to Estimating Wages of VHA Employees – FY2008 Update. Technical Report 25. 2010, Health Economics Resource Center: Menlo Park Smith M, Cheng A: A Guide to Estimating Wages of VHA Employees – FY2008 Update. Technical Report 25. 2010, Health Economics Resource Center: Menlo Park
34.
go back to reference Abuse S, Administration MHS: The ADSS Cost Study: Costs of Substance Abuse Treatment in the Specialty Sector. Office of Applied Studies; Analytic Series A-20, HHS Publication No. SMA 03–3762. 2003, HHS: Rockville Abuse S, Administration MHS: The ADSS Cost Study: Costs of Substance Abuse Treatment in the Specialty Sector. Office of Applied Studies; Analytic Series A-20, HHS Publication No. SMA 03–3762. 2003, HHS: Rockville
35.
go back to reference Pizer S, Wang M, Comstock C: You get what you pay for: Using cost functions to validate and prioritize quality of care measures. HCFE WP# 2004–01. 2004, Boston: Health Care Financing & Economics Pizer S, Wang M, Comstock C: You get what you pay for: Using cost functions to validate and prioritize quality of care measures. HCFE WP# 2004–01. 2004, Boston: Health Care Financing & Economics
37.
go back to reference O’Connell MJ, Kasprow W, Rosenheck RA: Rates and risk factors for homelessness after successful housing in a sample of formerly homeless veterans. Psychiatr Serv. 2008, 59: 268-75. 10.1176/appi.ps.59.3.268.CrossRefPubMed O’Connell MJ, Kasprow W, Rosenheck RA: Rates and risk factors for homelessness after successful housing in a sample of formerly homeless veterans. Psychiatr Serv. 2008, 59: 268-75. 10.1176/appi.ps.59.3.268.CrossRefPubMed
38.
go back to reference Humphreys K, Hamilton E, Moos R, Suchinsky R: Policy-relevant program evaluation in a national substance abuse treatment system. J Ment Health Adm. 1997, 24: 4- Humphreys K, Hamilton E, Moos R, Suchinsky R: Policy-relevant program evaluation in a national substance abuse treatment system. J Ment Health Adm. 1997, 24: 4-
39.
go back to reference Barnett P, Berger M: Cost of positron emission tomography: method for determining indirect cost. Technical Report #5. 2003, Menlo Park: VA Health Economics Resource Center, 10- Barnett P, Berger M: Cost of positron emission tomography: method for determining indirect cost. Technical Report #5. 2003, Menlo Park: VA Health Economics Resource Center, 10-
Metadata
Title
Directed funding to address under-provision of treatment for substance use disorders: a quantitative study
Authors
Austin B Frakt
Jodie Trafton
Amy Wallace
Matthew Neuman
Steven Pizer
Publication date
01-12-2013
Publisher
BioMed Central
Published in
Implementation Science / Issue 1/2013
Electronic ISSN: 1748-5908
DOI
https://doi.org/10.1186/1748-5908-8-79

Other articles of this Issue 1/2013

Implementation Science 1/2013 Go to the issue