In periods of change, psychiatric services must project outcomes of de
cisions about service innovations and reductions, including budgetary
implications. To support such decision making, a public-sector psychia
tric service in Melbourne, Victoria, Australia, developed a modeling t
ool that combines data from its service activity database and budgetar
y information with modeling techniques based on use of a spreadsheet.
The model is based on clients' use of three major service components:
the inpatient unit, continuing clinical care and consultancy services,
and crisis assessment and treatment set-vices. It classifies clients
according to patterns of care-that is, whether they used one, two, or
three of the components, in various combinations. The authors report s
ervice use and financial data derived from the model for the financial
year 1992-1993. They describe two scenarios for using the model to pr
oject changes in patterns of care and costs when new services are impl
emented. Such a model can clarify costs, including opportunity costs,
of management decisions and facilitate participation of senior clinici
ans in active service planning within the realities of budgetary const
raints.