Mental illness costing region $30B a year, study reveals

2023 figures show a $12.65 billion impact on GDP.
Sarah Hackenbracht, president and CEO of the Greater Dayton Area Hospital Association, speaks at City Hall about the significant negative economic impact on the region of poor mental health, Sept. 24, 2025. CORNELIUS FROLIK / STAFF

Sarah Hackenbracht, president and CEO of the Greater Dayton Area Hospital Association, speaks at City Hall about the significant negative economic impact on the region of poor mental health, Sept. 24, 2025. CORNELIUS FROLIK / STAFF

Untreated mental illness costs the region almost $30 billion a year, according to a new study.

“The sheer size of the economic impact to our region is astounding,” said Sarah Hackenbracht, president and CEO of the Greater Dayton Area Hospital Association. “It shows me we still have work to do, and there are changes and policies we can put into place.”

The Economic Impact of Behavioral Health in the Greater Dayton Region study found that mental illness had a $12.65 billion negative impact on GDP, cost $3.25 billion in spending on mental health and physical care, had a negative $13.92 billion quality-of-life impact due to premature deaths resulting from mental illness, and cost $177.65 million in non-health care costs such as incarcerations, homelessness support and diverted education.

The study was published by Wright State University, the Greater Dayton Area Hospital Association and OneMorning, a mental health engagement platform.

‘A key economic factor’

The study was conducted by Thomas Traynor, professor emeritus of economics at Wright State University.

He analyzed 2023 data from across 11 counties and 1.8 million people.

“What this study shows is that behavioral health is not a side issue, it is a key economic factor,” Traynor said. “Every percentage point of improvement in mental health translates into hundreds of millions of dollars in regained productivity, healthier communities and quality of life.”

According to the study, 24.2% of people in the region are affected by mental illness.

The economic impact affects every aspect of the region, from workforce productivity to health care costs to premature deaths.

The study also estimates that a 10% reduction in mental illness could boost the region’s economy by more than $1.27 billion a year.

Medical residents, Dr. Alexandra Diaz (left) and  Dr. Anna Moore (center) along with Wright State professor Dr. Peter Reynolds at Five Rivers Family Health Center. Wright State's Boonshoft School of Medicine received a $2.3 million grant for mental health training for residents in their family medicine program in 2023. STAFF / FILE

Credit: JIM NOELKER

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Credit: JIM NOELKER

“This study emphasizes that behavioral health impacts every sector of our lives, communities and economy,” said Tia Marcel Moretti, assistant director at the Ohio Department of Mental Health and Addiction Services. “We have an opportunity to collaborate on private-public partnerships to ensure good health and economic wellness, and this study showcases that by investing in prevention, treatment and recovery support, we not only improve lives, but we also strengthen Ohio’s workforce and future.”

The study was presented in September to a cross-section of 100 regional leaders from business, health care, government, nonprofits and other organizations during a roundtable discussion at Wright State University with a goal of developing actionable policy recommendations to reduce the economic burden of mental health illness.

Catching up to the crisis

While mental illness is costing the region economically, state and local officials are working to address this issue, even as some have felt like their hands have been tied due to the lack of available inpatient mental health beds and other resources.

Dayton had an inpatient psychiatric hospital until Twin Valley closed 16 years ago due to state budget cuts. Since then, jails have become the de facto place for mental health and substance abuse treatment. People with mental health disorders are over-represented in the criminal justice system, the Montgomery County Behavioral Task Force found previously.

Evan Curtin (left) and his mother Peg Stephens talk to law enforcement about crisis training focused on mental health, March 16, 2023 at the Greene County Criminal Justice Academy. Curtin has had more than 50 encounters with police, many while having mental health issues. STAFF / FILE

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Last year, the state said it would pursue constructing a new mental health hospital for the region. State officials said previously that a Dayton-area facility was needed to relieve pressure on the Columbus facility and Summit Behavioral Healthcare in Cincinnati.

The announcement came after a three-tiered mental health crisis system — which included a crisis call center, mobile response units and a crisis stabilization center — failed to get off the ground in Montgomery County when the provider, RI International, backed out, citing financial losses.

Eleanor Hake, an intern for Dayton Children's, colors while posing as a patient to demonstrate functionality in a room at Dayton Children's Mathile Center for Mental Health and Wellness. The center started serving patients in July. BRYANT BILLING / STAFF

Credit: Bryant Billing

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Credit: Bryant Billing

The state initially set aside $10 million for planning, land acquisition and initial design work for the new, 216-bed mental health hospital in the region. The total cost of the hospital, though, is estimated at around $273 million, according to initial estimates from the Ohio Department of Mental Health and Addiction Services, and it will be a years-long process.

Mental health resources for youth, though, are ramping up as Dayton Children’s recently opened its Mathile Center for Mental Health and Wellness. The $110 million center doubled the number of inpatient mental health beds Dayton Children’s had for children in the area, as well as expanded other resources and options for children who are struggling with their mental health.

Taylor Rieck (right) laughs while answering a question during a tour of Mathile Center for Mental Health and Wellness on Monday. Rieck is the primary handler of Piper, a service dog who comforts patients. Marissa White (center), a volunteer, portrays a patient. BRYANT BILLING / STAFF

Credit: Bryant Billing

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Credit: Bryant Billing

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