Article
Mental health and addiction care falls short because it's not profitable
By Caitlin Owens Jan 29, 2024 for Axios
The profitability challenges in treating complex behavioral health issues hinder efforts to address the profound impact of serious mental illness and addiction. Despite the urgent need for more services, the private market lacks strong incentives due to low profitability and demographic factors. The complexity of these conditions and the taxing nature of treating the sickest patients further complicate efforts. Without clear incentives, solving these challenges requires a comprehensive approach that addresses both health care and social services while recognizing their interconnected nature with broader social determinants of health.
Key Takeaways
- Profitability Challenges: Treating complex behavioral health issues like serious mental illness and addiction is not very profitable, leading to a lack of incentives for the private market to invest in solutions.
- Urgent Need: Despite the significant impact of these issues on families and communities, the supply of behavioral health care is lacking, with millions of Americans going without treatment.
- Demographic and Financial Barriers: People suffering from serious mental illness and addiction often have poorly paying government insurance or cannot pay at all, contributing to the low profitability of behavioral health care.
- Complexity of Conditions: Behavioral health conditions are scientifically complex and often require labor-intensive, long-term treatment. They also overlap with socioeconomic issues, requiring interventions beyond traditional health care.
- Challenges for Providers: Mental health professionals may avoid treating the sickest patients due to the taxing nature of the job and low pay, exacerbating workforce shortages.
- Market Dynamics: Market dynamics are better for individuals with access to employer coverage, but overall, no clear incentives exist to solve behavioral health issues.
- Comprehensive Approach Needed: Solving these challenges requires a comprehensive approach that addresses both health care and social services, recognizing their interconnected nature with broader social determinants of health.
From the Article
Some of America's most challenging behavioral health care problems include a key disadvantage: They're not very profitable to treat.
Why it matters: Serious mental illness and addiction have a profound effect on families and communities, but their complexity and their concentration among lower-income people make them issues that the private market has little incentive to solve.
Get a Free Trial
InterAct offers virtual care solutions and referral solutions to treatment programs for extended care after in-patient treatment, family support programs and intensive outpatient services.
