October 2007

Lessons Learned From Three Mental Health Diversion & Post-Release Programs

The Pennsylvania Legislative Budget and Finance Committee sought to determine the fiscal impact of three mental health diversion projects. They reviewed reports of programs in Chester and Allegheny counties, and a program run by Gaudenzia, Inc., in the City of Philadelphia. They found that mental health courts, diversion, and post-release support programs operated in Pennsylvania did not result in significant cost savings. However, the potential to avoid jail costs occurred when the programs were a joint effort between criminal justice and mental health agencies. The three programs reviewed were essentially cost-neutral. The program successes also depended on the availability of adequate community-based mental health services and stable housing options. Any cost savings were realized because the programs shift costs from local and state governments, which fund jails, to the federal and state-funded Medicaid program.