The Costs of Providing Supported Employment Services to Individuals with Psychiatric Disabilities

The purpose of this study was to determine whether supported employees with psychiatric disorders cost Vocational Rehabilitation more to serve than supported employees with other conditions (e.g., mental retardation). Method: A structured cost-accounting methodology was used to compare the adjusted costs (in FY 2005 dollars) of services received by all supported employees funded by Vocational Rehabilitation in Wisconsin from FY 2002 to FY 2005. Results: Supported employees with psychotic and non-psychotic disorders were among the least costly populations to serve via supported employment. They averaged annual per capita expenditures of $3,846 and $2,579, respectively. Supported employees, as a whole, generated average annual per capita expenditures of $4,683. Conclusions: Based upon data presented here and by other researchers, it would appear that individuals with psychiatric disorders are cheaper to serve than populations more traditionally referred to supported employment (e.g., individuals with mental retardation). If this conclusion is disseminated to referring agencies, perhaps individuals with psychiatric disorders will be referred to supported employment in greater numbers.