Schizophrenia affects people at a young age and leads to significant disability and dysfunction. Studies in the US and the UK suggest that the cost of treating all schizophrenia patients ranges from $2.35 billion to $3,270 billion a year. Direct treatment costs are in the range of $8.8 million to $17,296 million a year, with cost per patient ranging from $3,560 to $39,000.

Data suggests that direct costs make up 13 to 53 per cent of the total treatment cost. Inpatient care is the biggest factor driving the direct costs. It is suggested that relapse prevention is the key to reducing health care costs. Studies have regularly shown that drug costs form only a small proportion of the total cost. Cost of drugs varies from 2 to 5.6 per cent of the total cost and 3 to 5 per cent of the direct cost.

Government studies suggest that the cost of schizophrenia treatment is similar to the cost of treatment of diabetes mellitus. However, in the treatment of diabetes mellitus, direct costs form two-third of the total cost, whereas in the treatment of schizophrenia, indirect costs in the form of loss of wages of patients and family members form two-third of the total cost.

A recent study suggests that the annual cost of treating a stable schizophrenia patient at the outpatient level is about Rs50,000. The cost of inpatient care, however, is much higher, considering the fact that many patients require long-term hospital stay. Factors that increase the cost of schizophrenia treatment include lower level of functioning and more number of visits to the hospital.

Recent data from India suggests that the cost of schizophrenia treatment in the country has doubled in the past decade. Unfortunately, the contribution of the government to the cost of treatment is less than 5 per cent. Almost all the cost is borne by the patient and the family.

Grover is assistant professor, department of psychiatry, Postgraduate Institute of Medical Education and Research, Chandigarh