Mental Health Expenditure in Canada

Area of Science:

• Health Economics
• Mental Health Services Research
• Public Health Policy

Background:

• Mental ill-health incurs substantial societal costs, with direct healthcare expenditures reaching up to 14% of total health spending in OECD countries (2003-2010).
• Accurate estimation of mental health care costs is crucial for effective policy-making and resource allocation.

Purpose of the Study:

• To estimate the direct healthcare costs of mental ill-health treatment in Canada for 2019.
• To provide internationally comparable estimates using OECD System of Health Accounts guidelines.

Main Methods:

• Expenditures classified using the OECD System of Health Accounts 2011 (hospitals, physicians, psychologists, prescription drugs, community care).
• Inclusion of both public and private expenditures, with estimates based on literature where data were lacking.

Main Results:

• Total estimated mental health care expenditure in Canada for 2019 was $17.1 billion.
• Hospital services ($5.5 billion) and prescription drugs ($4.3 billion) were the largest cost components.
• Mental health spending represented 6.4% of total health expenditures in Canada.

Conclusions:

• The study provides the most current and comprehensive estimate of Canadian mental health expenditures.
• Community-based mental health and addiction services require further standardization and data collection.
• Data challenges, particularly for private spending and certain care settings, suggest the total estimate may be conservative.