Cost Analysis of Psychiatric Care With and Without Supportive Housing for Patients With Severe Mental Illness in Canada: A Rapid Review

Canada faces a mental health crisis, with one in five citizens experiencing mental illness annually, contributing to an economic burden of $50 billion. Supportive housing for individuals with serious mental illness (SMI) has been shown to improve quality of life and reduce hospitalizations. This review examines the cost-effectiveness of psychiatric care with and without supportive housing. A review and narrative synthesis revealed supportive housing to be cost-saving, despite high initial costs, through reduced resource utilization. Policymakers should prioritize supportive housing as a cost-effective alternative to inpatient care for individuals requiring gradual community reintegration.