Psychosocial Factors and the Management of Physical Illness: A Contribution to the Cost-Containment of Medical Care *

Abstract

Cost-containment of medical care has become of increasing importance to both medical administrators and politicians. Recently, studies have examined the impact of psychological and psychiatric treatments on medical care utilisation and hospitalisation rates and the cost-effectiveness of such treatments. These studies have demonstrated that interventions based on a consideration of psychosocial factors in physical illness are effective in reducing the morbidity, and mortality, of a wide range of illnesses and that they lead to reduced medical care utilisation and a lower rate of hospital treatment. It has also been demonstrated that holistic management based on the ‘biopsychosocial’ model of illness is cost-effective and that there is an overall reduction of expenditure after allowing for the cost of the psychological or psychiatric treatment. It is concluded that further development of consultation-liaison psychiatry should be encouraged to promote awareness of the influence of psychosocial factors on physical illness and their early management as both clinically important and cost-effective.