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What difference a decade? The costs of psychosis in Australia in 2000 and 2010: Comparative results from the first and second Australian national surveys of psychosis

journal contribution
posted on 2023-05-17, 20:32 authored by Amanda NeilAmanda Neil, Carr, VJ, Mihalopoulos, C, MacKinnon, A, Lewin, TJ, Morgan, VA
Objectives:To assess differences in costs of psychosis between the first and second Australian national surveys of psychosis and examine them in light of policy developments.Method:Cost differences due to changes in resource use and/or real price rises were assessed by minimizing differences in recruitment and costing methodologies between the two surveys. For each survey, average annual societal costs of persons recruited through public specialized mental health services in the census month were assessed through prevalence-based, bottom-up cost-of-illness analyses. The first survey costing methodology was employed as the reference approach. Unit costs were specific to each time period (2000, 2010) and expressed in 2010 Australian dollars.Results:There was minimal change in the average annual costs of psychosis between the surveys, although newly included resources in the second survey's analysis cost AUD$3183 per person. Among resources common to each analysis were significant increases in the average annual cost per person for ambulatory care of AUD$7380, non-government services AUD$2488 and pharmaceuticals AUD$1892, and an upward trend in supported accommodation costs. These increases were offset by over a halving of mental health inpatient costs of AUD$11,790 per person and a 84.6% (AUD$604) decrease in crisis accommodation costs. Productivity losses, the greatest component cost, changed minimally, reflecting the magnitude and constancy of reduced employment levels of individuals with psychosis across the surveys.Conclusions:Between 2000 and 2010 there was little change in total average annual costs of psychosis for individuals receiving treatment at public specialized mental health services. However, there was a significant redistribution of costs within and away from the health sector in line with government initiatives arising from the Second and Third National Mental Health Plans. Non-health sector costs are now a critical component of cost-of-illness analyses of mental illnesses reflecting, at least in part, a whole-of-government approach to care.


Publication title

Australian & New Zealand Journal of Psychiatry








Menzies Institute for Medical Research


Sage Publications Ltd.

Place of publication


Rights statement

Copyright 2013 The Royal Australian and New Zealand College of Psychiatrists

Repository Status

  • Restricted

Socio-economic Objectives

Mental health

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