Archived News:
Report looks into the future cost of mental health services
A report looking into the current and future needs for mental health services and their related costs, has been published by the King's Fund. It suggests that without the right level of investment everyone will pay the price for wasted resources and wasted lives.
Paying the Price was commissioned by the King's Fund in 2006 to estimate mental health expenditure in England for the next 20 years to 2026. The review aimed to assess the current need for services as well as the cost of providing them; Project these needs and costs to the year 2026; and assess the impact that specific interventions may have on these costs.
The report's key findings are:
- The number of people in England experiencing a mental health problem within the groups studied is projected to rise by more than 1.2 million people
- The prevalence rates for all mental disorders within all age groups are likely to remain broadly stable.
- Dementia will see the largest increase in numbers, particularly for those aged 75 and over, because of the ageing population. The costs associated with dementia are far higher than all other conditions put together. By 2026 it is estimated they will make up 73% of all mental health costs, compared to 66% in 2007.
- Service costs are projected to increase by 45% to £32.6 billion in 2026, primarily due to dementia. However, costs will increase by 111% to £47.5 billion if the real pay and price effect is taken into account (a 2% annual increase in health prices over and above the GDP deflator).
- Many people with mental disorders are either not in contact with services or in contact but not receiving any treatment (estimated at 35% of people with depression and 51% with an anxiety disorder). There is a significant potential to treat more people if diagnostic services were accessible, treatment was available and people were willing to accept it. Net savings were estimated as a result of reducing unemployment costs which would outweigh increased treatment costs. the report did , however, recognise that Primary Care Trusts would bear the increase in treatment costs whilst the benefits in terms of increased employment, reduced benefit payments and tax revenue would be felt elsewhere.
- The cost of unemployment is projected to increase by 7.7% to £28.1 billion. Although this is a small increase it represents an adverse economic impact on poor mental health which currently outstrips the NHS and social care service costs of supporting people with mental disorders.
- Effective service interventions could potentially reduce costs. Although there would be increased service costs, increased employment would create a saving. Crisis intervention and early intervention services could also produce cost savings from a reduced need for services at a later stage. However, the report pointed out that whilst all the evidence-based interventions had the potential to reduce costs, and should on this basis be pursued, there would not be any savings from such interventions. The one exception would be reducing the prevalence of dementia in those aged under 85.
The report recommended:
- Government commitment to ensure funding meets expected increased costs.
- A sustained effort to support people of working age with mental health needs to return to work.
- An expansion of evidence-based interventions in primary care settings
- Setting up better systems of early detection and treatment of dementia
- More research into the cost-effectiveness of intervention, including mental health promotion and prevention initiatives.
Related items
Paying the Price report
Consultation begins on national dementia strategy
Date: 30 May 2008