Evaluating mental health care: The role of economics

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Abstract
The relevance of economics to the provision of mental health care derives from the fact that the resources available to provide this service are inevitably limited. Choices must be made between competing uses of these resources. Every decision on what mental health care is to be provided, for whom and where, involves the sacrifice of benefits from discarded options. Making the best use of the available resources requires comparing the costs and benefits of alternatives. Economic appraisal is a technique for collecting information on the costs and benefits of competing uses of resources. A description of the principles of economic appraisal, as applied to mental health care, is provided and the complexities of measuring the costs and outcomes of alternative care packages are explored. Most aspects of care of the mentally ill, both in institutions and the community, have yet to be evaluated: it cannot be demonstrated that existing or proposed policies are efficient.