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Cost Analysis for Chronically Ill Homeless Adults Compared to Usual Care

This study assesses the cost-saving measures of a supportive housing program for homeless adults with chronic mental illness. To do so, researchers conducted a randomized control trial of 407 individuals: 201 received the supportive housing intervention and 206 received usual care without housing. The costs associated with eight different services were tallied, including hospital and emergency room visits, nursing home stays and legal services. The authors conclude that the supportive housing group generated $6,307 per person/year in cost savings when compared to the group that didn't receive housing and services. A subgroup analysis of chronically homeless individuals and individuals with HIV/AIDS found cost savings of $9,809 and $6,622, respectively.

This study, fully titled, "Comparative Cost Analysis of Housing and Case Management Program for Chronically Ill Homeless Adults Compared to Usual Care," was written by Anirban Basu, Romina Kee, David Buchanan and Laura Sadowski. It follows up on previous Chicago-based research available here and here.

Using numbers gathered for this article, the AIDS Foundation of Chicago has concluded that for every 100 chronically homeless individuals housed in the program, $1 million in public funds is saved.

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Research category: Cost Savings