RD199 - Report on Assertive Community Treatment – Program Funding, Cost Effectiveness, and Impact – November 1, 2025


Executive Summary:

The Department of Behavioral Health and Development Services (DBHDS) assesses general financial figures for Assertive Community Treatment (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 in FY 2024 served by ACT teams across the Commonwealth in was $19,117, representing a rising trend from the previous fiscal year.

• State hospitalization usage for all ACT-served individuals admitted in FY 2022 was reduced by 54 percent, representing a cost avoidance of $17,397,050 for the two years post their ACT admission related to this population.

• All new FY 2022 ACT-served individuals accounted for 25,061 state hospital bed days in the two years prior to their ACT admission, and just 11,601 in the two years post their ACT admission.

• Across the FY 2016 - FY 2022 cohorts, the ACT program contributed to an overall cost avoidance of $84,547,446 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 2022 had a 35 percent reduction, which represents a cost avoidance of $2,515,616 in the two years post their ACT admission related to this population.

• All new FY 2022 ACT-served individuals accounted for 7,051 local hospital psychiatric bed days in the two years prior to ACT admission, and just 4,575 in the two years post ACT admission.