Economic Evaluation of a Crisis Residential Program

This study assessed the cost savings to the local health care system from using a 16-bed crisis residential facility (the Inn) in Austin, Texas, instead of hospitalization, for individuals with acute psychiatric illness (N=1,364) during FY2017–FY2019. Health service utilization data were obtained from the provider and Central Texas’s regional health information exchange. Unit cost data were obtained from the provider, Austin State Hospital, the Healthcare Cost and Utilization Project, and the Medical Expenditure Panel Survey. Results indicated that the Inn saved the health care system up to $2.8 million annually. Future work can use these findings to improve the efficiency and effectiveness of the mental health care system.