Economic Burden and Cost Analysis of Schizophrenia

Schizophrenia imposes a substantial and multidimensional economic burden on individuals, health systems and societies. Direct costs encompass hospitalisation, outpatient visits, pharmacotherapy and rehabilitation, while indirect costs arise from lost productivity due to unemployment, absenteeism, caregiver time and premature mortality. Global cost‐of‐illness studies consistently demonstrate that indirect costs often exceed direct medical expenditures, accounting for over half of total societal burden. Key drivers of expense include duration of inpatient care, severity of negative symptoms, proportion of medication costs and regional variations in income and service delivery. Methodological approaches such as cost‐of‐illness analyses, human capital and friction cost methods yield differing estimates of productivity losses, underscoring the need for standardised frameworks. Practical applications of cost analysis inform resource allocation, cost–effectiveness evaluations of pharmacological and psychosocial interventions, and the design of community-based and vocational rehabilitation programmes. By integrating economic evidence into policy decisions, stakeholders can prioritise early intervention, optimise care models and ultimately reduce both health-care expenditures and the wider societal impact of schizophrenia.

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Economic Burden and Cost Analysis of Schizophrenia publication trend

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Technical terms

Direct costs: Expenditures for medical services, hospitalisation, medications and formal care associated with diagnosis and treatment.

Indirect costs: Economic losses due to reduced productivity, absenteeism, unemployment, premature death and informal caregiving.

Human capital method: A valuation of lost productivity based on projected earnings over the period of illness or disability.

Friction cost method: An employer-perspective approach that estimates productivity losses only for the period required to replace a worker.

References

1. A study on the changing trend and influencing factors of hospitalization costs of schizophrenia in economically underdeveloped areas of China. Schizophrenia (2023).
2. Productivity costs of schizophrenia spectrum and other psychotic disorders by friction cost and human capital methods: The Northern Finland Birth Cohort 1966. Social Psychiatry and Psychiatric Epidemiology (2024).
3. A systematic review of the indirect costs of schizophrenia in Europe. European Journal of Public Health (2018).