Google Answers Logo
View Question
 
Q: cost of not treating mental illness ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: cost of not treating mental illness
Category: Health > Medicine
Asked by: mentalhealth-ga
List Price: $50.00
Posted: 23 Sep 2003 10:22 PDT
Expires: 23 Oct 2003 10:22 PDT
Question ID: 259450
I am interested in data related ot the cost of not providing treatment
for mental illness.  I am talking in general sense not a specific
disease.  I am interested in data related to community and family
breakdown.
Answer  
Subject: Re: cost of not treating mental illness
Answered By: pinkfreud-ga on 23 Sep 2003 12:26 PDT
Rated:5 out of 5 stars
 
According to a 2001 study by the National Mental Health Association,
untreated mental illness costs the United States a staggering $113
billion each year.

"Untreated mental illness costs the nation $113 billion annually. It
ends up adding to inefficient, costly care of physical ailments."

National Alliance for the Mentally Ill 
http://web.nami.org/pressroom/20020723.html

"Untreated mental illness costs American businesses, government and
families at least $113 billion annually in lost productivity and
social costs."

New York City Voices
http://www.newyorkcityvoices.org/2002novdec/20021101.html

"Today, the real purchasing power of state mental health funding,
adjusted for inflation, has dropped by more than $5 billion and the
economy is losing an estimated $113 billion a year in lost
productivity and welfare costs because of untreated and mistreated
mental illness and substance abuse disorders."

National Mental Health Association
http://www.nmha.org/shcr/community_based/index.cfm

"Untreated mental illness costs money. The American economy loses an
estimated $113 billion a year due to untreated and mistreated mental
illness. Lost productivity amounts to $105 billion of these losses,
and $8 billion is spent on welfare and crime (Rice, 1999).

* Cutting dollars for mental health care can increase overall medical
costs.  A 30 percent cost reduction in mental health services at a
large Connecticut corporation triggered a 37 percent increase in
medical care use and sick leave by employees using mental health
services, thus costing the corporation more money rather than less
(Yale Bulletin & Calendar, September 20-27, 1999).

* Mental health services can save money. Spending less than $500 over
a two year period to help treat depression in a primary care setting
would save business $3,836 during that time (Rand, 2001).

* Mental health services can help reduce crime. For each dollar
invested in treatment, studies have found a four to seven dollar
cost-savings on crime and criminal justice costs.  The cost of
incarcerating someone for five years is $125,000 – a cost that is much
higher than treatment (ONDP, 1999)."

National Mental Health Association
http://www.nmha.org/federal/parity/partiyfactsheet.cfm

"American business, governments and families lose $113 billion a year
from the cost of untreated and mistreated mental illness because of
discriminatory business practices, uncoordinated spending programs,
unfounded fears and misunderstanding, according to a new report by the
National Mental Health Association.

NMHA’s Labor Day 2001 Report concludes that the economy could cut its
losses by half - or by $56.5 billion - with an increased investment in
the prevention and treatment of mental illness.  The nation now spends
$92 billion on the direct treatment of mental illness. According to
various cost-benefit studies, an additional 5.5 percent investment of
$5 billion the country could yield between a two and 10 times savings
rate by reducing absenteeism, unemployment, welfare and other
factors...

In summary, the report found that the economic cost of untreated and
mistreated mental illness in the United States has nearly tripled
during the past 10 years. The total cost for mental illness in both
the private and public sector is $205 billion, but less than half of
that amount - $92 billion - is spent on treatment. Untreated and
mistreated mental illness costs $105 billion in lost productivity, and
$8 billion in costs from crime and welfare."

National Mental Health Association
http://www.nmha.org/newsroom/system/news.vw.cfm?do=vw&rid=332

The full text of the NMHA's "Labor Day 2001 Report," mentioned above,
is available here as a .pdf file:

National Mental Health Association
http://www.nmha.org/pdfdocs/laborday2001.pdf

From the NMHA document linked above, here are some quotes related to
community and family issues:

"In August 2001, Dr. [Dorothy P.] Rice confirmed that her ongoing
studies show that the total yearly cost for mental illness and
addictive disorders in both the private and public sector in the U.S.
is $205 billion. Less that half of that amount ($92 billion) is for
direct treatment costs. The rest -- $113 billion -- is due to lost
productivity ($105 billion) and crime and welfare costs ($8 billion)."

"In contrast to the costs of untreated and mistreated mental illness
and addictive disorders, there is growing evidence that prevention and
early, community-based treatment programs are significantly
cost-effective for business and government. The cost-benefit ratios
for early treatment and prevention programs range from 1:2 to 1:10,
meaning that a $1 investment yields a $2 to $10 savings. For example,
the cost savings to American communities and businesses by providing
early treatment and support for one high-risk youth is between $1.7
and $2.3 million, more than five times the estimated cost of early
treatment."

"The U.S. Surgeon General in 1999 determined that community-based
systems of care for children reduce reinstitutionalizations after
discharge from residential settings and out-of-state placement of
children, and improve other individual outcomes such as the number of
behavior problems and satisfaction with services. State and federal
governments spend roughly $20 billion per year on cash transfers to
poor non-elderly adults and children. They spend roughly the same
amount for food stamps for such families. A conservative estimate is
that 25 percent of people on welfare are depressed. If half of them
could be treated successfully, and of that percentage two-thirds could
return to productive work, at least part-time, factoring treatment
costs, that could still reduce welfare costs by as much as 8 percent?a
savings of roughly $3.5 billion per year."

More on community and family aspects of the subject:

"There is something fundamentally wrong when for some families the
only way to get involuntary treatment for the mentally ill family
member is to have that person arrested... Failure to treat people
before they enter the criminal justice system is a major reason for
the increase in jail populations. Jail diversion programs and mental
health courts are positive steps but don't address the fundamental
problem: treating people before problems occur. Today there are nearly
five times more mentally ill people in the nation's jails and prisons
(nearly 300,000) than there are in all the state psychiatric hospitals
(about 60,000). The problem is untreated mental illness. There are 4.5
million Americans with schizophrenia and manic-depressive illness, and
at any given time 40%, or 1.8 million people are not receiving
adequate treatment."

Treatment Advocacy Center
http://www.psychlaws.org/GeneralResources/article130.htm

"People with untreated psychiatric illnesses comprise one-third, or
200,000 people, of the estimated 600,000 homeless population... People
with untreated psychiatric illnesses spend twice as much time in jail
than non-ill individuals and are more likely to commit suicide.

Violent episodes by individuals with untreated mental illness have
risen dramatically, now accounting for an estimated 1,000 homicides
annually in the United States.

According to a 1994 Department of Justice Statistics Special Report,
"Murder in Families," 4.3 percent of homicides committed in 1988 were
by people with a history of untreated mental illness. The report also
found:

- of spouses killed by spouse - 12.3 percent of defendants had a
history of untreated mental illness;

- of children killed by parent - 15.8 percent of defendants had a
history of untreated mental illness;

- of parents killed by children - 25.1 percent of defendants had a
history of untreated mental illness; and

- of siblings killed by sibling - 17.3 percent of defendants had
history of untreated mental illness."

Rescuing Patty Hearst
http://www.rescuingpattyhearst.com/links.html

"Being labeled with a psychiatric diagnosis profoundly negatively
affects the experiences of parents and their family members, adults
and children alike. However, undiagnosed, untreated mental illness
takes its toll on families as well... Custody loss rates for parents
with mental illness range as high as 70 to 80%; in some states the
diagnosis of mental illness alone justifies removal of children from
their parents' care (Burton, 1990). The real cost of family
disruptions to society and the emotional burden to children and adults
are incalculable."

National Mental Health Information Center
http://www.mentalhealth.org/publications/allpubs/KEN-01-0109/intro.asp

Google search strategy:

Google Web Search: "untreated mental illness costs"
://www.google.com/search?hl=en&ie=UTF-8&oe=UTF-8&q=%22untreated+mental+illness+costs

I hope this information is useful. If anything is unclear, or if a
link does not function, please request clarification; I'll gladly
offer further assistance before you rate my answer.

Best regards,
pinkfreud
mentalhealth-ga rated this answer:5 out of 5 stars
Love the nakme by the way.  This was my first question.  I think
he/she did a great job based on my ability to ask the question. I hope
to improve my questions as I go.

Comments  
There are no comments at this time.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy