Assertive Community Treatment (ACT) is an evidence-based practice (EBP) proven to improve outcomes for people with severe mental illness. One of the oldest and most widely researched EBP’s in behavioral healthcare for people with severe mental illness, research shows that ACT reduces hospitalizations and incarceration, increases housing stability, and improves quality of life for people with the most severe symptoms of mental illness.(*1) ACT utilizes a multidisciplinary, community-based team of medical, behavioral health, and rehabilitation professionals who work together to meet the needs of the individuals that they serve.

The Department of Behavioral Health and Development Services (DBHDS) assesses general financial figures for ACT – costs per team and costs per individual served, the program’s impact on state and local hospitalization and incarceration, and the associated cost implications from diverting ACT clients from these more expensive services. The assessment of data indicated ACT services resulted in lower hospitalization and incarceration rates for individuals being served, and substantial associated cost reductions.

Some of the main findings in this report supporting the value of investment in ACT services across the Commonwealth include:

• The average cost per individual served by ACT teams across the Commonwealth in FY 2023 was $17,838, representing a consistent trend with the previous fiscal year.

• State hospitalization usage for all ACT-served individuals admitted in FY 2021 was reduced by 45 percent, representing a cost avoidance of $12,086,216 related to this population.

• All new FY 2021 ACT-served individuals accounted for 22,130 state hospital bed days in the two years prior to their ACT admission, and just 12,233 in the two years post their ACT admission.

• Across the FY 2016, FY 2017, FY 2018, FY 2019, FY 2020, and FY 2021 cohorts, the ACT program contributed to an overall cost avoidance of $67,150,396 in state hospital costs in the two years following initiation of ACT services.

• Local psychiatric hospitalization use for all ACT-served individuals admitted in FY 2021 had a 32 percent reduction, which represents a cost avoidance of $1,470,831 related to this population.

• All new FY 2021 ACT-served individuals accounted for 8,195 local hospital psychiatric bed days in the two years prior to ACT admission, and just 5,541 in the two years post ACT admission.
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(*1) For a collection of relevant research, see: UNC Institute for Best Practices. (2019). ACT [Research]. Retrieved from http://www.institutebestpractices.org/act/research/