PTSD could cost Israeli economy 50 billion dollars over the next five years - study

PTSD could cost Israeli economy 50 billion dollars over the next five years - study

2024-08-02 05:01:04

The total cost to the economy was estimated to be around 197 billion shekels, which is comparable to the estimated budget increase for the Defense Ministry over the next five years.

The total cost to the economy was estimated to be around 197 billion shekels, which is comparable to the estimated budget increase for the Defense Ministry over the next five years.

AN AGITATED participant at this week’s Knesset lobby for aid to IDF veterans with PTSD. (photo credit: OREN BEN HAKOON/FLASH90)
AN AGITATED participant at this week’s Knesset lobby for aid to IDF veterans with PTSD.
(photo credit: OREN BEN HAKOON/FLASH90)

A new study published on Wednesday has found that the economic burden of PTSD on Israel could reach around 197 billion shekels ($53.2 billion) over the next five years.

The study was aimed at revealing the economic impact of PTSD on the Israeli economy following the outbreak of the Israel-Hamas War. It was conducted by the SFI Group and MAPS Israel, which both work to develop new innovative medical treatments.

The study found that an individual case of PTSD could cost 1.86 million shekels ($485,000) over their lifetime, with the cost increasing by nearly 400,000 shekels depending on the official recognition and benefit eligibility.

They estimated that the total cost to the economy would be around 197 billion shekels, which they compared to the estimated increased budget of the Defense Ministry over the next five years (220 billion shekels/$59 Billion).

Tired pensive military man feeling worry and despair overhead view. Psychological trauma and PTSD treatment at therapy session. Tired pensive military man feeling worry and despair overhead view (credit: INGIMAGE)

The cost to the economy is split between three main factors: the cost of National Insurance benefits (18%), the direct impact on employment and productivity (74%), and the impact of mental disorders and addictions (8%).

The cost is similarly split between three groups: the individual and their family (30%), the state, due to the decrease in tax revenues and an increase in public service costs (30%), and a decrease in labor productivity at the national level (40%).

Innovative MDMA-assisted psychotherapy treatment

Due to these large costs, MAPS Israel focused on developing new MDMA-assisted psychotherapy, which previous studies showed a ~70% effectiveness in reducing symptoms.

They estimate that for every 1 shekel invested in this program, there will be a 12.5 to 14.9 shekel return on investment at the national level.

Yaron Neudorfer, CEO and founder of SFI Group: "For the first time in Israel, we have an economic study that provides a comprehensive picture of the economic implications of PTSD and demonstrates the importance of data-based economic measurement. This approach allows for precision in allocating public resources and encourages the development of national solutions for needs that are emerging (and will continue to emerge) during this time of emergency."