Economic Evaluation of a Crisis Residential Program.

Area of Science:

• Health Services Research
• Mental Health Economics
• Psychiatric Care Delivery

Background:

• Acute psychiatric illness necessitates effective and cost-efficient treatment pathways.
• Traditional hospitalization can be a significant financial burden on healthcare systems.
• Alternative crisis residential facilities offer potential cost-saving opportunities.

Purpose of the Study:

• To evaluate the economic impact of a crisis residential facility (the Inn) compared to hospitalization.
• To quantify cost savings for the local healthcare system in Austin, Texas.
• To assess the feasibility of the Inn as an alternative for acute psychiatric care.

Main Methods:

• Analysis of health service utilization data for 1,364 individuals over FY2017-FY2019.
• Inclusion of data from the crisis facility provider and regional health information exchange.
• Unit cost data sourced from multiple healthcare providers and national surveys.

Main Results:

• The Inn demonstrated significant cost savings for the healthcare system.
• Annual savings reached up to $2.8 million by utilizing the Inn instead of hospitalization.
• The facility proved to be a cost-effective alternative for acute psychiatric care.

Conclusions:

• Crisis residential facilities like the Inn offer substantial financial benefits to local healthcare systems.
• Findings support the integration of such facilities into mental healthcare frameworks.
• Further research can optimize mental health system efficiency and effectiveness.