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Reallocating Australia's Scarce Mental Health Resources

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  • Ruth F.G. William s
  • D.P. Doessel

Abstract

This paper applies some simple analytical tools from the economists' toolbox to shed some light on a sleeper issue in Australia's mental health sector. The problem is that there are large numbers of people with no diagnosed mental health condition who consume mental health services. Simultaneously, there are large numbers of people who have very serious mental health problems who receive no mental health services. This untreated group is often referred to as those with ?unmet need?, a much-heard term. We refer to the first group as people with 'met non-need', a term hardly ever heard. Although the solution to the unmet-need problem is the oft-heard call for increased government expenditure, no attention is directed to the wasted expenditure associated with the 'met non-need' group: the met non-need issue is 'the elephant in the room'. We point to an alternative policy response; that is, a reallocation of resources from the met non-need group to the unmet need group. To achieve this, we direct focus upon a structural reform in the processes of supplying mental health services.

Suggested Citation

  • Ruth F.G. William s & D.P. Doessel, 2016. "Reallocating Australia's Scarce Mental Health Resources," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 23(1), pages 47-72.
    • Handle: RePEc:acb:agenda:v:23:y:2016:i:1:p:47-72
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    File URL: http://press-files.anu.edu.au/downloads/press/n2264/pdf/analysis03.pdf
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    References listed on IDEAS

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    1. Doessel, D. P., 1986. "Medical diagnosis as a problem in the economics of information," Information Economics and Policy, Elsevier, vol. 2(1), pages 49-68.
    2. Doessel, D. P. & Scheurer, Roman W. & Chant, David C. & Whiteford, Harvey, 2007. "Financial incentives and psychiatric services in Australia: an empirical analysis of three policy changes," Health Economics, Policy and Law, Cambridge University Press, vol. 2(1), pages 7-22, January.
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    7. Anonymous, 1963. "World Health Organization," International Organization, Cambridge University Press, vol. 17(4), pages 979-985, October.
    8. Darrel P. Doessel & Ruth F.G. Williams, 2011. "Resource Misallocation in Australia’s Mental Health Sector under Medicare: Evidence from Time‐series Data," Economic Papers, The Economic Society of Australia, vol. 30(2), pages 253-264, June.
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