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The Costs of Failing to Provide Appropriate Mental Health Care
Government Relations Practice Directorate
For more information: E-mail
The effects of mental disorders, which strike a substantial portion of
Americans, extend far beyond those who are in direct need of services. Mental
disorders create a burden on our health care system because patients with
untreated psychological disorders are heavy users of medical services. In
addition mental disorders have a direct effect on our economy because they
result in diminished productivity in the workplace. Providing appropriate mental
health care helps those who suffer from psychological disorders, saves valuable
health care resources, and restores productivity in the workplace.
Mental disorders affect a substantial portion of Americans including children
and older Americans
- Right now, an estimated 15-18% of Americans, including 14 million children,
suffer from a diagnosable mental disorder.
- Fifty to 70% of usual visits to primary care physicians are for medical
complaints that stem from psychological factors.
- Anxiety and depression are among the six most common conditions seen
in family practice.
- In any one-month period, nearly 8 million Americans suffer from depression.
As many as one in five Americans will suffer at least one major episode of
depression during their lifetimes.
- Twenty-five percent of patients seen by primary care physicians have
psychological disorders.
- A random sample of elderly residents in Medicaid facilities found that
nearly 80% of the residents had moderate to intense needs for mental health
care.
Mental disorders are real and debilitating. They result in lost productivity
that affects all Americans.
- In 1990, major depression alone cost an estimated $23 billion in lost work
days.
- Minor depression, which affects more people, may account for 51% more
disability days than major depression.
- Mental disorders often are more disabling than chronic physical illnesses
including high blood pressure, gastrointestinal problems (e.g., ulcers), and
even diabetes.
- Mental disorders are the health condition that most limits the ability
to work. In fact, they are the third most limiting health condition in terms of
performing major daily activities, preceded only by cancer and stroke.
- A three-year study of a large corporation showed that 60% of employee
absences were due to psychological problems.
- Individuals with major depression were found to be more than 4 times more
likely to take disability days than non-depressed employees and 3 times more
likely to miss time from work.
- Workers testing positive for drug use were two and a half times more likely
to be absent than workers who did not test positive. In 1980, alcoholism alone
cost America 500 million lost work days.
The cost of lost productivity due to mental disorders can be measured in
real dollars.
- A 1985 government report estimates that mental illness and substance
abuse cost Americans $77.2 billion in lost income.
- 1989 payments for stress-related disability claims totaled $380 million in
California alone, according to the National Council on Compensation
Insurance.
Providing appropriate mental health care saves valuable health care
resources...
- Patients with mental disorders are heavy users of medical services,
averaging twice as many visits to their primary care physicians as patients
without mental disorders.
- When appropriate mental health services are made available, this heavy use
of the system often decreases, resulting in overall health savings.
- Cost offset studies show a decrease in total health care costs following
mental health interventions even when the cost of the intervention is
included.
- In addition, cost offset increases over time, largely because over time,
patients continue to decrease their overall use of the health care system, and
don't require additional mental health services.
...and restores productivity in the workplace
- A review of 58 studies of the effectiveness of psychotherapy for depression
found that after depressed patients were treated, 77% scored significantly
better on evaluations than depressed patients who received no treatment. Eighty
percent of the treated group scored better than wait-listed controls.
- In a study of 742 substance abuse patients undergoing a variety of
treatments, alcohol abusers showed a 67% decrease in number of days intoxicated
and a 150% increase in earned income.
Drug abusers showed a 67% decrease in opiate use, 50% decrease in stimulant
use, and a 390% increase in earned income.

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