The market for residential and day schools for children with severe emotional disturbance.

This article describes the market for residential and day programs that provide education and treatment services on site for children with severe emotional disturbance (SED) in terms of the market's size, cost, and ownership mix. As policymakers encourage integration of services across sectors, this research fills a gap in the mental health services literature by providing a baseline of information on facilities from the education sector. Data are used from a national, stratified sample survey of separate day and residential schools for children with handicaps conducted by the Department of Education. There are 1,523 facilities providing educational and treatment services to 117,720 children with SED. Over half of the facilities are nonprofit, one-third are public, and less than one-tenth are for-profit. These programs represent a significant market of services for children with SED. Substantial differences in cost exist across ownership form that cannot be attributed to differences in size of facility or case mix of children enrolled.