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Related Experiment Video

Updated: Jan 19, 2026

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Resource allocation for psychosis in Australia.

Vaughan J Carr1, Amanda L Neil2, Terry J Lewin3

  • 1Professor of Psychiatry, Centre for Mental Health Studies, University of Newcastle, Callaghan, NSW 2308, Australia, email Vaughan.Carr@hunter.health.nsw.gov.au; Director, Hunter Mental Health; Scientific Director, Neuroscience Institute of Schizophrenia and Allied Disorders (NISAD).

International Psychiatry : Bulletin of the Board of International Affairs of the Royal College of Psychiatrists
|September 12, 2019
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Summary

The annual cost of psychosis in urban Australia is AU$2.25 billion, with most spending on inpatient care due to a lack of community support. This highlights a need for better community-based mental health services.

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Area of Science:

  • Health Economics
  • Psychiatry
  • Public Health

Background:

  • The economic burden of severe mental illnesses like psychosis is substantial.
  • Previous estimates of psychosis costs in Australia were outdated.

Purpose of the Study:

  • To estimate the annual economic cost of psychosis in urban Australia.
  • To analyze the distribution of costs between direct healthcare and lost productivity.
  • To examine the patterns of mental health service delivery.

Main Methods:

  • Utilized a census-based prevalence survey.
  • Estimated costs based on prices from the year 2000.
  • Categorized costs into direct mental health care and lost productivity (unemployment).

Main Results:

  • The total annual cost of psychosis in urban Australia was estimated at AU$2.25 billion.
  • Direct mental health care accounted for approximately 40% of total costs.
  • Inpatient care dominated treatment costs, indicating a deficit in community-based support services.
  • There was a notable lack of psychosocial treatments, rehabilitation, and substance use interventions in community services.

Conclusions:

  • The high cost of psychosis is exacerbated by a reliance on long-stay hospitalisation.
  • Current service delivery models are skewed towards inpatient care, neglecting essential community-based interventions.
  • There is a critical need to reallocate resources towards community-based psychosocial support and rehabilitation services for individuals with psychosis.