New Headway Report shows that increased investment in mental health care can avoid costs of more than €122 billion across Europe
- Key findings from the new publication highlight the tremendous burden for European societies and healthcare systems due to mental health conditions.
- Increased investment in healthcare resources of €27.4 billion could avoid €122.9 billion of mental health costs, more than one fourth of the costs incurred by the healthcare system and the overall society.
- Every €1 additionally invested in mental healthcare in EU-27+UK countries generates additional direct and indirect benefits of €4.50, yielding exponential return of investment for European societies.
- Prevalence of mental health conditions including depression (+14%) and anxiety (+20%) has increased across Europe.
Brussels (Belgium), 25 September 2024 – New research shows that the avoidable direct and indirect costs due to mental health conditions across 28 countries in Europe amount to a staggering €122.9 billion each year. With national health systems and society overall currently spending €430 billion each year on mental health concerns, this means that more than one fourth of the spend could be saved and invested elsewhere. The data, part of the latest Headway Mental Health Report, was presented by The European House – Ambrosetti (TEHA), an Italian Think Tank, together with Angelini Pharma, an international pharmaceutical company which is part of the privately-owned Angelini Industries, at the European Parliament today.
According to the report, the national health systems across the European Union (EU) and the United Kingdom of Great Britain and Northern Ireland (UK) could make combined direct savings of €79.4 billion each year by allocating a larger portion of their total healthcare budget to mental health services. In addition, this investment would also generate indirect annual savings of €43.5 billion by reducing the burden on social services. In total, the avoidable direct and indirect cost of mental healthcare across all 28 countries adds up to €122.9 billion each year.
The latest edition of the report, first launched in 2017 and available online, provides a clear roadmap for how governments can yield those substantial savings and support the mental health of their populations more effectively. The data shows that low- and middle-income countries should aim to invest at least 6.5% of their total healthcare budget in mental health services, while high-income countries should meet or maintain a threshold of at least 10%. However, only seven out of 28 countries currently meet those targets. The additional combined annual spend needed to reach the recommended mental health investment threshold equals €27.4 billion. Compared with the total avoidable cost per year, this means that each additional €1 spent on mental health prevention or services would lead to an exponential return on investment of €4.50.
The benefits of a stronger investment in mental healthcare would not only be noticeable on a financial scale. Importantly, it would also lead to significant improvements in the population's mental health outcomes, such as lower suicide rates, decreased reliance on emergency and long-term medical services, and improved labor participation.
"Mental health is not just a healthcare issue - it's a fundamental concern that touches every aspect of our lives, from education and employment to community design and social policy" - said Ruggero Razza, Member of the European Parliament - "With mental disorders now constituting one third of the disease burden in Europe, it is imperative that we move beyond reactive care and invest in proactive, coordinated public mental health strategies across all policy domains. Only through such comprehensive and cross-sectoral efforts can we build a Europe where every citizen has the opportunity to thrive, both mentally and physically."
The report also provides a comparative analysis of mental health in the 27 EU member states and the UK. Using 54 key performance indicators, the report includes a wealth of data regarding the determinants of mental health, the mental health status of the population and the responsiveness of national health systems to people’s needs relating to healthcare, workplaces, schools and society in general. Since 2022, Headway has also included neurological diseases to cover all health areas related to the broader definition of Brain Health.
“The Headway Report highlights the magnitude and extent of mental health issues across Europe, highlighting potential much-needed solutions to tackle these issues,” said Jacopo Andreose, Chief Executive Officer at Angelini Pharma. “At Angelini Pharma, we welcome the next European Commission’s intention to maintain mental health as a priority policy area, in preparation for a future European partnership for Brain Health. We encourage all EU Member States, along with the UK, to continue contributing their expertise and resources toward identifying the most effective preventive mental health measures. As highlighted in the report, an additional annual investment in these target areas could generate large savings for European governments - easing the strain on social services, boosting workforce productivity, and delivering an economic return of €4.50 for every €1 invested. This is crucial not only for strengthening healthcare systems but also for reducing the societal burden across Europe, paving the way for a healthier future for all."
The report highlights that, on average, European countries have improved their health systems’ responsiveness to mental health needs by 7% compared to 2022 (average score increased from 4.9 to 5.2), despite the stark rise in the prevalence of mental health conditions such as depression (+14%) and anxiety (+20%) compared to pre-pandemic times. Countries with a positive trend include Denmark, France, Latvia, Luxembourg and the UK. However, the majority of the EU member states have seen a negative trend in mental health expenditure, with most of the countries showing a decrease in their readiness to respond to mental health needs in schools, workplaces and society in general.
“With the new Headway report, we can now rely on several years of data that can guide the monitoring and planning of mental health strategies in Europe. The latest figures are encouraging because they indicate the path to improved mental health outcomes for people across Europe,” said Elisa Milani, Project Coordinator and Consultant, Healthcare Area at The European House – Ambrosetti. “Our analysis shows the multifactorial determinants of mental health that may cause individuals to develop conditions such as depression and anxiety; only a comprehensive, multidisciplinary approach can yield the best outcomes. For example, the data clearly demonstrates the positive return of investment that governments, and of course their people, can get when increasing government expenditure on both mental health and social services. Given that only seven out of 28 analyzed countries are currently meeting the suggested level of investment in mental health services, there is an urgent need for action.”
Click here to view the report infographic.
About Headway
The Headway initiative addresses important issues in brain and mental health across Europe. Launched in 2017 by The European House – Ambrosetti (TEHA), an Italian Think Tank, in partnership with Angelini Pharma, part of the privately owned Angelini Industries, the initiative has the aim of creating a multidisciplinary platform for strategic reflection, analysis, dialogue and comparison between various European experiences in the management of individuals affected by mental disorders.
Since its inception, the Headway initiative has grown to include several studies, reports and activities dedicated to advancing discussions around the mental health services and management needed for patients living with these disorders across Europe.
Headway Mental Health Index 4.0 is the latest addition to the Headway initiative and provides for a dynamic and more complete picture of the effects of health, social, employment, educational and environmental policy interventions on the mental health status of the population across Europe.
About Brain Health
Brain health is the state of brain functioning across cognitive, sensory, social-emotional, behavioral and motor domains, essential for overall well-being and encompassing both mental and neurological health. Historically treated as separate areas, recent research highlights their significant overlap. Mental health issues, like depression and anxiety, often stem from physical and environmental triggers, while neurological conditions can reciprocally affect mental states.