An analysis of Medicaid rate setting for behavioral health revealed that inadequacies were largely due to utilization of available information and not from the method of rate selection.  The paper discusses Tennessee’s experience as a paradigm for the difficulties of rate setting and enumerates key lessons for other states.   

Hoag, S., Wooldridge, J., &Thornton, C. (2000). Setting rates for Medicaid managed behavioral health care: lessons learned (PDF | 112.95 KB). Health Affairs, 19(4): 121-133. Copyright © 2000 by Project HOPE. 

Authors: Shelia Hoag, Judith Wooldridge, Craig Thornton