Background Eighteen acute in-patient psychiatric units in Australia fu
nded a syndicate to measure case-mix, disability and outcome of treatm
ent, This syndicate included eight units in public general hospitals,
five in stand-alone public psychiatric hospitals and five in private p
sychiatric hospitals. Method Up to 100 in-patients admitted consecutiv
ely to each hospital (1359 in all) were assigned to a Diagnosis-Relate
d Group (DRG), rated on the Health of the Nation Outcome Scales (HoNOS
) and asked to complete the Medical Outcomes Trust Short Form 36 (SF36
). These scales were administered again at discharge. Demographic info
rmation and length of stay were also recorded. Disability was measured
by scores on the HoNOS and SF36 at admission, and outcome was assesse
d by the change in scores between admission and discharge. Results The
public hospitals treated significantly more patients with schizophren
ia and fewer with affective disorders, and their case load on admissio
n was more disabled, on the whole, than that of the private hospitals.
They achieved the same outcome or health gain as the private hospital
s, but needed a shorter length of stay to do so, The addition of disab
ility scores to DRG moderately increased the ability to predict length
of stay. Conclusions Routine outcome assessment using reliable and va
lid instruments is practical, and could lead to improvements in the qu
ality of care for psychiatric patients.