Psychiatric Misdiagnosis in Acute Care: A Case-Anchored Review of Clinical and Economic Consequences
Location
LSUHSC-NO
Publication Date
April 2026
Start Date
9-4-2026 10:00 AM
End Date
9-4-2026 2:00 PM
Description
Background: Diagnostic errors in acute psychiatric settings adversely affect patient outcomes and contribute to excessive costs and inefficient use of resources within healthcare systems. It is estimated that diagnostic error contributes to approximately 11% of healthcare expenditure annually. For example, commonly misdiagnosed psychiatric conditions, such as bipolar 1 disorder {BPD- 1) and major depressive disorder (MOD), often incur significantly higher healthcare utilization compared to patients correctly diagnosed at onset. To contextualize the current state of research surrounding psychiatric misdiagnosis within the literature, this review aims to synthesize existing literature examining the clinical and economic consequences of misdiagnosis, using a representative case as a conceptual anchor to illustrate diagnostic error contributes to healthcare waste.
Methods: A review of published literature spanning from 2015 to 2026 was conducted via online databases, primarily PubMed. Key words used during search inquires included mental health, schizophrenia, psychosis, bipolar disorder, economic, misdiagnosis, diagnostic error, health care resources, health care costs, and health care utilization.
Results: Relevant literature examining psychiatric misdiagnosis and healthcare utilization was synthesized, including multiple retrospective cohort studies and economic analyses. A representative case report was additionally included to contextualize system-level and clinical outcomes.
Conclusions: Preliminary synthesis of the literature suggests that excess healthcare costs associated with misdiagnosis are largely driven by increased hospitalizations, emergency room visits, and outpatient visits, and inappropriate pharmacologic treatment, underscoring the significant downstream impact of diagnostic errors.3 Data from schizophrenia-related economic analyses further underscores the magnitude of inpatient and pharmacologic expenditures within psychiatric care. The largest drivers of direct healthcare costs related to schizophrenia were found to be inpatient visits and medications, contributing to an estimated 26% of the total cost. Strengthening diagnostic precision in acute settings may serve as a high-impact strategy to reduce unnecessary healthcare spending while improving patient outcomes.
Recommended Citation
Mermilliod, I.; Barberito, M.; and Bierma, S., "Psychiatric Misdiagnosis in Acute Care: A Case-Anchored Review of Clinical and Economic Consequences" (2026). Dept. of Psychiatry Research Symposium. 19.
https://digitalscholar.lsuhsc.edu/psych_rd/2026/posters/19
Psychiatric Misdiagnosis in Acute Care: A Case-Anchored Review of Clinical and Economic Consequences
LSUHSC-NO
Background: Diagnostic errors in acute psychiatric settings adversely affect patient outcomes and contribute to excessive costs and inefficient use of resources within healthcare systems. It is estimated that diagnostic error contributes to approximately 11% of healthcare expenditure annually. For example, commonly misdiagnosed psychiatric conditions, such as bipolar 1 disorder {BPD- 1) and major depressive disorder (MOD), often incur significantly higher healthcare utilization compared to patients correctly diagnosed at onset. To contextualize the current state of research surrounding psychiatric misdiagnosis within the literature, this review aims to synthesize existing literature examining the clinical and economic consequences of misdiagnosis, using a representative case as a conceptual anchor to illustrate diagnostic error contributes to healthcare waste.
Methods: A review of published literature spanning from 2015 to 2026 was conducted via online databases, primarily PubMed. Key words used during search inquires included mental health, schizophrenia, psychosis, bipolar disorder, economic, misdiagnosis, diagnostic error, health care resources, health care costs, and health care utilization.
Results: Relevant literature examining psychiatric misdiagnosis and healthcare utilization was synthesized, including multiple retrospective cohort studies and economic analyses. A representative case report was additionally included to contextualize system-level and clinical outcomes.
Conclusions: Preliminary synthesis of the literature suggests that excess healthcare costs associated with misdiagnosis are largely driven by increased hospitalizations, emergency room visits, and outpatient visits, and inappropriate pharmacologic treatment, underscoring the significant downstream impact of diagnostic errors.3 Data from schizophrenia-related economic analyses further underscores the magnitude of inpatient and pharmacologic expenditures within psychiatric care. The largest drivers of direct healthcare costs related to schizophrenia were found to be inpatient visits and medications, contributing to an estimated 26% of the total cost. Strengthening diagnostic precision in acute settings may serve as a high-impact strategy to reduce unnecessary healthcare spending while improving patient outcomes.