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[Introduction To] The Medical Offset Effect And Public Health Policy: Mental Health Industry In Transition, Jonathan B. Wight, John L. Fiedler

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Does the timely treatment of mental illness result in a drop in the cost of health care, and if so, what is the cost effectiveness? This study provides an overview, synthesis, and analysis of the medical offset effect. It demonstrates that a medical offset effect does exist and the size of the effect is significant. A behavioral model provides a precise method for ascertaining the dimensions of medical offset and an explanation of the underlying causal relationships. The offset effect for an important population group is analyzed through the use of Medicaid patient data from Georgia and Michigan. This clear, …