New research from Lancaster University Management School examining the impact of waiting times for mental health treatment on employment reveals that for every one-month of waiting time, approximately two percent of patients lose their job.
The new study, forthcoming in The Review of Economics and Statistics, focuses on average monthly waiting times across the Netherlands between 2012 and 2019 and finds that a one month increase in waiting time also increases the total amount of care patients need by approximately 10 percent in the first five years.
Results show most people who fall out of the labour market while waiting for treatment flow into the disability insurance system or into social assistance - and the vast majority are still unemployed eight years after the start of treatment.
Dr Roger Prudon from Lancaster University Management School led the study. He said: "Data on NHS mental health treatments liked to employment outcomes is scarce in the UK, so while the Netherlands' set up is different, the healthcare system is similar to that of the UK - and both countries are facing increasing demands for mental health treatments and a backlog of extended waiting lists.
"By focusing on the impact of waiting times in the Netherlands, my estimates show that a one-month reduction in the average waiting time would help 80,000 people get access to treatment annually, and could save more than €300 million in unemployment-related costs every year. Applying this calculation to the UK - based solely on population size - it could generate approximate savings of £1 billion per year."
Dr Prudon also examines the demographics of those seeking mental health treatment in the Netherlands and finds that waiting times aren't the same for all groups of the population - with some groups faring worse than others. Those with a migration background wait 7-11 days longer for treatment on average, than others; while those who are less educated wait 3-13 days longer for treatment than those who are more educated.
While similar estimates are not available for the UK, disparities in access to mental healthcare have been found in the UK as well. Minority groups are on average more likely to suffer from mental health disorders but are less likely to receive mental healthcare.
"When I drilled into the data I was surprised to see that these specific groups of people are more likely to lose their job as a result of waiting times than others - which implies that the burden of waitlists is particularly large for already disadvantaged groups," Dr Prudon continues.
"By investing in additional healthcare practitioners to reduce waiting times, nations would not only help more people get seen more quickly and reduce the overall levels of treatment patients would need in the long run - but their economies would benefit because a greater proportion of the population would be more likely to stay in work."
To reduce waiting times in the Netherlands by a month for one year, the study outlines an additional 100 psychiatrists or psychologists would be required at an approximate annual cost of €10 million. However, Dr Prudon estimates this would generate economic benefits thirty times the size of the initial investment.
The paper, Is Delayed Mental Health Treatment Detrimental to Employment?, is forthcoming in The Review of Economics and Statistics: https://direct.mit.edu/rest