A study commissioned by the Indiana Council of Community Mental Health Centers found that Indiana is saving more than $45 million a year due to increased mental health crisis services.
The study found that more mental health services led to a decrease in the incarcerated population, leading to significant savings. The $45 million is in addition to the more than $80 million saved in treatment costs from early interventions that prevent hospitalization.
For every dollar spent on community mental health services, there is a significant and measurable benefit to society, according to the study. The study highlights the important role that community mental health centers and crisis units play in improving mental health outcomes, reducing emergency room visits and keeping people from being incarcerated.
“We are pleased to see the data has proven what common sense tells you,” said Rob Ryan, Bowen Health president and CEO. “If we can meet someone when they are in crisis, no matter how they define that, we can de-escalate the situation and get them the help they need, so jail or hospitalization does not have to be the result.”.
Key findings of the study included:
- Reduced health care costs: Community mental health centers help decrease the need for emergency room visits and inpatient hospitalizations, reducing overall health care spending.
- Crisis services vs. inpatient hospitalization: Addressing mental health needs sooner through crisis services has saved $80.8 million annually for community mental health centers in Indiana. Providing timely, effective mental health interventions reduces the need for more costly emergency room visits and hospitalizations. By focusing on community-based care, including mobile crisis units and 988, Indiana prevents costly institutional care and ensures individuals in crisis receive the appropriate support sooner, ultimately lowering health care expenses.
- Crisis services vs. jail: Crisis services in Indiana have saved the state an annualized $45 million in jail services by diverting individuals with mental health crises away from jails and into appropriate care. Through programs like mobile crisis units and mental health treatment, individuals in need of mental health services receive timely interventions that prevent arrests and reduce the need for incarceration. This approach not only improves outcomes for those in crisis but also lowers the financial burden on the criminal justice system.
In northern Indiana, rural living makes mental health servicing challenging for companies like Bowen Health. Through grant funding, the company has employed several strategies to utilize the study as a means for change.
A new rural Indiana crisis stabilization site has served more than 1,000 people since December 2024, in addition to a mobile crisis response pilot program with the Huntington Police Department. The two initiatives work in tandem to support the mental health of the residents.
“If we can do a warm handoff to a mental health professional, and they can interact with that person, that’s a win for us. But more importantly, it’s a win for that citizen,” said Andrew Ellet, captain of the Huntington Police Department.
Bowen hopes their efforts will inspire other health care companies to prioritize mental health care in Indiana.
For more information about Bowen Health, visit bowenhealth.org.
This reporting is made possible by a grant from the Indianapolis African-American Quality of Life Initiative, empowering our community with essential health insights. https://iaaqli.org/
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Contact Health & Environmental Reporter Hanna Rauworth at 317-762-7854 or follow her on Instagram at @hanna.rauworth.
Hanna Rauworth is the Health & Environmental Reporter for the Indianapolis Recorder Newspaper, where she covers topics at the intersection of public health, environmental issues, and community impact. With a commitment to storytelling that informs and empowers, she strives to highlight the challenges and solutions shaping the well-being of Indianapolis residents.
