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

Karinna Saxby (), Thomas Buchmueller (), Sonja C. de New () and Dennis Petrie ()
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Karinna Saxby: The Melbourne Institute: Applied Economic and Social Research, The University of Melbourne
Thomas Buchmueller: Ross School of Business, University of Michigan
Sonja C. de New: Centre for Health Economics, Monash Business School, Monash University, IZA,RWI
Dennis Petrie: Centre for Health Economics, Monash Business School, Monash University

No 2025-11, Working Papers from Centre for Health Economics, Monash University

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, antipsychotics). We find that place factors account for approximately 72% 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 suggestive evidence that larger place effects predict fewer mental health related ED presentations, self-harm hospitalizations, and suicides. Altogether, our findings suggest there is inadequate and inequitable supply in regions with low utilization, rather than inefficiently high utilization in high utilization regions.

Keywords: healthcare supply; healthcare demand; mental health; regional variation; suicide (search for similar items in EconPapers)
JEL-codes: H51 I11 I13 I14 I18 J18 (search for similar items in EconPapers)
Date: 2025-07
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