State mental health authorities and other public and private entities are d
eveloping outcome measures and comparing results across providers, programs
, and systems. To make comparisons equitable, outcomes must he risk adjuste
d. This article provides an introduction to mental health risk adjustment a
nd outlines issues involved in the selection of outcome and risk variables,
data collection protocols, and analytic methods. It stresses the importanc
e of proper identification of risk-adjustment variables and models. The art
icle concludes with the next steps necessary, to develop a valid approach t
o the risk-adjustment methodology.