Mental Disorders and Substance Abuse Costs Ontario $34 Billion

For Immediate Release - November 14, 2006 (Toronto) – A new study released today by the Centre for Addiction and Mental Health (CAMH) reveals that, in the year 2000, the economic cost of mental disorders and substance abuse in Ontario was $33.9 billion. According to The Economic Costs of Mental Disorders, Alcohol, Tobacco, and Illicit Drug Abuse in Ontario, 2000 approximately 85% ($28.7 billion) of the total cost was due to productivity losses.  The remaining economic burden ($5.1 billion) was total direct costs such as hospitalizations, community mental health and substance use programs, law enforcement, research, and education.  

This study fills a vital information gap. Ontario’s cost data related to substance abuse was outdated, and until now no comprehensive data on the costs of mental disorders has ever been available. The study indicates that:

• The direct cost of mental disorders was $2.1 billion, while that of substance abuse was higher at $3 billion. Law enforcement costs accounted for $2 billion of these substance abuse costs.
• The direct cost attributable to alcohol abuse was the highest of any diagnostic group at $1.5 billion.
• Among mental disorders, severe mental disorder accounted for the highest direct costs at $641 million, most of which were health care costs.

This study, led by CAMH’s Dr. William Gnam, further highlights the huge problem Ontario faces in dealing with mental disorders and substance abuse.  Said Dr. Gnam,” We know that these problems significantly contribute to the overall burden of disease, and this burden will only increase. It’s interesting to note then that our results showed $55.4 million was spent on research, education, and prevention for mental disorders and substance abuse.  This is only about 1% of the total direct cost placed on society due to these complex problems.” 

The data also reveals startling information on deaths related to substance use and mental disorders.  Dr. Gnam and his team estimatedthat In Ontario in 1999 -- the year with the closest available data -- there were 7,313 premature deaths attributable to mental disorders and substance abuse, with 68.3% of the total due to tobacco abuse, 20.4% due to alcohol abuse, 6.3% due to mood disorders (primarily through suicides), and 4.2% due to illicit drug abuse.

According to Dr. Gnam, “understanding the current costs of mental disorders and substance abuse is vital if intermediate and long-term program and policy decisions are to be well-informed and proactive.”

Research like this is useful first steps for policy and future planning.  But more information is needed on avoidable costs, as well as tools and methods for forecasting future costs, to make a sustained difference in the lives of those impacted by mental disorders and substance abuse.

For more information on CAMH’s programs and services visit http://www.camh.net

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The Centre for Addiction and Mental Health (CAMH) is one of the leading addiction and mental health organizations in North America and Canada's largest mental health and addiction teaching hospital, fully affiliated with the University of Toronto. A Pan American Health Organization and World Health Organization Collaborating Centre, CAMH combines clinical care, research, policy, education and health promotion to improve the lives of people impacted by mental health and addiction issues.

For more information or to schedule interviews with Dr. William Gnam, please contact Michael Torres, Media Relations Coordinator, CAMH, at (416) 595-6015.

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