The state of Indiana is saving more than $45 million a year thanks to increased mental health crisis services that are keeping more people out of jail.
These savings are in addition to the more than $80 million saved in treatment costs thanks to effective early interventions that keep people out of hospitals, according to a news release from Bowen Health.
Bowen Health is one of many agencies that receive funding from the Indiana Division of Mental Health and Addiction (DMHA), making this change possible. The new study, commissioned by The Indiana Council of Community Mental Health Centers, and conducted by Blue & Co., showcases the tremendous value and impact that Community Mental Health Centers (CMHCs) have on individuals, families and communities across the state.
The study shows that for every dollar spent on community mental health services, there is a significant and measurable benefit to society. These findings highlight the critical role Community Mental Health Centers and crisis units play in improving mental health outcomes, reducing emergency room visits and hospitalizations, keeping people out of jails and the court system, and supporting individuals in living healthier, more fulfilling lives.
“You often hear people say that we have a mental health crisis. While it is true that today's world is complex and challenging, today in Indiana there are more resources than ever. The state has partnered with agencies just like ours to make care available when you need it, where you need it and provide that crisis care at no cost," said Dr. Rob Ryan, Bowen Health president and CEO. “We are pleased to see the data has proven what common sense tells you. If we can meet someone when they are in crisis, no matter how they define that, we can de-escalate the situation and get them the help they need, so jail or hospitalization does not have to be the result. That means law enforcement and busy hospital ERs can help others and these individuals can quickly get the help they need.”
The study, which involved a comprehensive analysis of data from CMHCs throughout Indiana, found that organizations like Bowen Health are not only essential to mental well-being but are a smart investment in the long-term health of the state’s economy, the release states.
Key findings from the study include:
• Reduced healthcare costs: Community mental health centers help decrease the need for emergency room visits and inpatient hospitalizations, reducing overall healthcare spending.
• Crisis services vs. Inpatient hospitalization: Addressing mental health needs sooner through crisis services has saved $80.8 million annually for community mental health centers in Indiana. Providing timely, effective mental health interventions reduces the need for more costly emergency room visits and hospitalizations. By focusing on community-based care, including mobile crisis units and 988, Indiana prevents costly institutional care and ensures individuals in crisis receive the appropriate support sooner, ultimately lowering healthcare expenses.
• Crisis services vs. Jail: Crisis services in Indiana have saved the state an annualized $45 million in jail services by diverting individuals with mental health crises away from jails and into appropriate care. Through programs like mobile crisis units and mental health treatment, individuals in need of mental health services receive timely interventions that prevent arrests and reduce the need for incarceration. This approach not only improves outcomes for those in crisis but also lowers the financial burden on the criminal justice system.
In northern Indiana, the realities are improving the outlook for area patients and law enforcement.
The initial $4.5 million grant, received by Bowen Health in 2023, combined with their own funds, helped kick-start this addition to public health offerings.
“The funding went toward getting the programs up and running, which included staff salaries and training,” said Tess Ottenweller, Bowen Health vice president of intensive services. “It also supported remodeling our Pierceton campus to create a 24/7/365 crisis stabilization unit.
“This unit provides immediate, compassionate care to individuals experiencing a crisis, while also offering a vital alternative for local law enforcement, ensuring that individuals in distress — who have not engaged in criminal behavior — have access to a safe and supportive environment.”
The rural Indiana site has served more than 1,000 people as of December 2024 and now averages 100 guests per month. A wide range of patient services are provided, including de-escalation, observation, counseling, medication management and safety planning. Patients are connected to resources and skills training that can improve their lives. Staff training and community outreach, as well as transportation and food for patients, are also supported by this funding.
Bowen Health also began a mobile crisis response pilot program with the Huntington Police Department in December 2024. Bowen Health employees trained in crisis response go alongside police officers to suspected mental health crisis situations.
Capt. Andrew Ellet welcomes the support offered to his department. Like most in the state, the Huntington Police Department is busy, responding to around 21,000 calls every year. Calls involving a mental health crisis can be time-consuming, especially when police have limited options for connecting people with the help they need.
“If we can do a warm handoff to a mental health professional, and they can interact with that person, that's a win for us, but more importantly, it's a win for that citizen,” said Ellet. He’s already looking ahead to further improvements in the process.
“Through the next year or two, we’re hoping to train more of our dispatchers to take those mental health calls and be able to direct them to the right place,” said Ellet. “If we can get those calls categorized at the onset as a potential crisis call, then we can get the right people in the right place from the first moment.”
From significant cost savings to improved mental health outcomes and reduced jail populations, the impact of community mental health centers is undeniable, according to the release. The study provides concrete evidence that these services are essential for building stronger, healthier communities. By prioritizing early intervention, crisis support, and community-based care, Indiana is leading the way in creating a model for effective and compassionate mental health care, the release states.