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Depression Treatment Pays for Itself in Productivity Savings

Depression is a prevalent disorder with substantial social costs, both direct (treatment) and indirect (e.g., lost productivity). This prospective community study sought to evaluate an important and poorly studied question: Does the reduction in indirect costs from effective treatment of depression compensate for the direct costs of treatment?

A community cohort of 448 individuals with major depression, dysthymia, or significant depressive symptoms was interviewed at baseline, 6 months, and 12 months; 171 respondents received treatment for depression. To estimate indirect costs, researchers multiplied lost work hours by hourly wages; provider and insurance records were used to estimate direct costs of depression treatment. Net economic costs (the sum of these two) were examined through regression analyses controlling for baseline depression severity, sociodemographics, and psychiatric comorbidity. Depression treatment was associated with a nonsignificant savings of $448 per individual. Sensitivity analyses that varied assumptions about the probability of seeking treatment, the cost of treatment in the primary care setting, and the value of lost wages also demonstrated that treatment costs were balanced by gains in work productivity.

Comment: This elegant study with very conservative assumptions shows that gains in work productivity easily offset the cost of treating depression. After considering the other benefits of reduced suffering and increased quality of life, employers should find it clearly advantageous to pay for depressed employees' treatment.

— P Roy-Byrne

Published in Journal Watch Psychiatry November 1, 1999

Citation(s):

Zhang M et al. A community study of depression treatment and employment earnings. Psychiatr Serv 1999 Sep 50 1209-1213.

• Medline abstract (Free)

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