Regional variation in mental healthcare utilization and suicide: Evidence from movers in Australia

Melbourne Institute Working Paper No. 07/24

Date: June 2024

Author(s):

Karinna Saxby
Thomas Buchmueller
Sonja C. de New
Dennis Petrie

Abstract

Poor mental health is a major global health issue, with many countries documenting high levels of unmet need and regional disparities in mental healthcare utilization. To determine how best to address these disparities, it is important to understand what drives regional variation. Using Census-linked microdata from Australia, we exploit cross-region migration to identify the extent to which patient and place factors drive regional variation in utilization of mental healthcare services and mental health prescriptions (antidepressants, anxiolytics). We find that place factors account for roughly 75% and 19% of the regional variation in utilization of mental healthcare services and mental health prescriptions respectively, with the rest reflecting patient-related demand. We also find that higher place effects predict fewer mental health related emergency department presentations, self-harm hospitalizations, and suicides. Altogether, our findings suggest there is inadequate and inequitable supply, rather than inefficient allocation across regions.

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