Findings reveal a growing public health
crisis with unsustainable health care costs
NEW
YORK, May 15, 2024 /PRNewswire/ --
Key takeaways
- The projected cumulative cost of mental health
inequities is estimated to amount to $14 trillion by the year 2040.
- The U.S. currently spends an estimated $477.5 billion annually in avoidable and
unnecessary expenses related to mental health inequities.
- Under the current conditions, the U.S. is estimated to spend
$1.26 trillion per year by 2040
on costs related to mental health inequities.
- Emergency department utilization related to mental health
inequities costs an estimated $5.3
billion annually, with projections suggesting a
potential rise to approximately $17.5 billion by 2040 if left
unaddressed.
Why this matters
Mental health conditions,
challenges and illnesses are often the invisible counterpart to the
much more visible chronic diseases that impact many people in
the United States. Deloitte and
the Meharry School of Global Health's analysis underscores the
urgent need for an equity-centered approach across government,
health care and business sectors to help mitigate the economic
burden created by mental health inequities and the chronic diseases
they exacerbate, and to improve overall well-being.
Lower-income individuals bear a disproportionate burden of
chronic conditions, exacerbating their economic challenges, while
racial and ethnic disparities persist in health care, as this
report's analysis demonstrates. Each of these key issues not only
leads to unnecessary health care spending but also contributes to
productivity loss, especially among marginalized groups that face
higher rates of unemployment due to mental health challenges.
Key quotes
"As a practicing physician, I see the correlation between how
chronic conditions can exacerbate mental health challenges and
economic strains that impact my patients' overall health. With my
patient experiences coupled with the findings from this report,
there's no denying that there is an urgent need to make mental
health more visible and prioritize actions to improve health
outcomes and reduce costs associated with managing these
conditions."
— Jay Bhatt, D.O., M.P.H., M.P.A., managing
director of the Deloitte Center for Health Solutions and
Health Equity Institute
"This report builds on my 2022 study examining the past economic
burden of mental health inequities in the
United States. In recognizing the compelling correlation
between brain health and chronic conditions, we determined that in
order to have a more complete picture of the costs of mental health
in America, we needed to understand the present and future costs of
inequities in mental health and physical health conditions. We urge
employers, clinicians, researchers, advocates, policymakers and
community leaders to unite in catalyzing actionable solutions to
address these pervasive and increasingly costly mental health
inequities. Now is an opportune moment to proactively shape the
mental health landscape for millions by addressing this pressing
issue and intentionally developing cost-effective
community-designed interventions."
— Daniel E.
Dawes, J.D., founding dean, School of Global Health at
Meharry Medical College
Correlations between chronic conditions and mental
health
The Deloitte and Meharry School of Global Health
analysis found:
- At nearly all ages, those with mental health conditions have a
higher prevalence of chronic conditions.
- Lower-income individuals with mental health conditions have
higher prevalence of chronic conditions compared to higher-income
individuals.
- Among those with mental health conditions, higher prevalence
rates of diabetes, HIV AIDS, and stroke are observed for
lower-income populations when compared to higher-income
individuals.
The path for a healthier future
Addressing equity in
mental health is an important factor underpinning any success
society will have in reducing inequities in mental health,
improving chronic disease management, and curtailing the rise of
excess health spending. This report examined the evidence to
determine if it is possible to reduce the impact of mental health
inequities, and if so, where leaders can find the most leverage to
do so.
The report found that significant cost savings can be achieved
by focusing on three areas: increasing access to high-quality
mental health care for underserved populations (an estimated 57%
currently face difficulty accessing care); integrating mental
health care into chronic disease management programs; and investing
in preventative mental health services to identify and address
issues early.
For communities that suffer from worse mental health, closing
the gap in access to quality mental health care could also lead to
a considerable decrease in the prevalence of premature death,
emergency department visits, productivity loss due to
cardiovascular disease, and all the costs associated with its
management.
The full report and findings are available here: "The projected
costs and economic impact of mental health inequities in
the United States."
Methodology
To gain a broader understanding of the
economic burden of mental health inequities in the United States, the School of Global Health
at Meharry Medical College and the
Deloitte Health Equity Institute conducted an equity-focused
quantitative analysis of data from Komodo's Healthcare Map, the
Medical Expenditure Panel Survey from the Agency for Healthcare
Research and Quality, the Centers for Disease Control and
Prevention's WONDER database, and the CDC's National Hospital
Ambulatory Medical Care Survey. This analysis expands on the
methodology utilized within Thomas
LaVeist, Darrell Gaskin, and
Patrick Richard's health disparities
research described in the 2009 report, The Economic Burden of
Health Inequalities in the United
States. and expands on the 2022 report, the
Economic Burden of Mental Health Inequities in the United States by Daniel E. Dawes and Christian M. Amador. While previous analyses
have quantified the impact of mental health on productivity, they
have not attempted to quantify the cost due to inequities
specifically. Quantifying productivity lost as a result of
inequities in mental health outcomes by race and ethnicity enabled
this analysis to achieve a nuanced view of the interconnected
relationship between mental and physical health.
About the School of Global Health at Meharry Medical College
The School of Global
Health at Meharry Medical College,
located in Nashville, Tennessee,
is rooted in Meharry's nearly 150-year legacy of leading on health
equity issues. As the nation's first and only School of Global
Health we are committed to preparing the next generation of global
health learners and leaders to find solutions and respond to our
communities' complex and evolving health challenges with a global
perspective. A hub for research and academic innovation in global
health, mental and behavioral health, population health, public
health, environmental health, health communications, social and
political determinants of health, and more, the School is a trusted
resource for health equity approaches and actionable solutions to
the inequities affecting our most vulnerable, under-resourced, and
marginalized communities. Learn more at MeharryGlobal.org.
About Deloitte
Deloitte provides industry-leading
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and risk advisory services to nearly 90% of the Fortune Global 500®
and thousands of private companies. Our people deliver measurable
and lasting results that help reinforce public trust in capital
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sustainable world. Building on its 175-plus year history, Deloitte
spans more than 150 countries and territories. Learn how Deloitte's
approximately 457,000 people worldwide make an impact that matters
at www.deloitte.com.
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