Reed House Inc.
Providing support to people with serious mental illness in collaboration with Gateway Behavioral Health System
1144 Cornell Avenue

Savannah, GA 31406
Director: Warren Sparrow
© 2014

Dylan turned his love of cooking into service at Reed House, then completion of a Chef’s Training curriculum at Virginia Tech with highest honors, leading to a career as a chef!

Available evidence substantiates the fact that Clubhouses like Reed House provide communities around the
world with a cost-effective solution for dealing with the devastating impact which mental illness has on society,
and for helping people who live with mental illness achieve their full potential in their communities.
According to available research, Clubhouses achieve the following tangible results for members and their

  • Better transitional employment results: longer on-the-job tenure is found to be highly correlated with
    Clubhouse attendance.
  • Cost effectiveness: the cost of Clubhouses is estimated to be one-third of the cost of the Individual
    Placement and Support model; about one-half the annual costs of Community Mental Health Centers;
    and substantially less than the Assertive Community Treatment model.
  • Reduced hospital stays: membership in a Clubhouse has resulted in a significant decrease in the number of
  • Reduced incarcerations: criminal justice system involvement is substantially diminished during and after
    Clubhouse program membership.
  • Improved well-being:
  • Compared with individuals receiving services as usual, Clubhouse members have been shown to be
    ​significantly more likely to report that they had close friendships and someone they could rely on when they
    needed help.
  • A recent study has suggested that service systems should prioritize services that offer ongoing social supports                                       like Clubhouses because they enhance mental and physical health by reducing disconnectedness.
  • A study conducted by the Health and Analytics Lab of New York University concluded that attendance in a clubhouse program such as Reed House reduces Medicaid expenditures for high need individuals by 21%.

Not included in this calculation are:

  • the costs of housing persons with untreated mental illness in jails, prisons, and homeless shelters;
  • the costs of the legal system in repeatedly prosecuting persons with untreated mental illness for minor offenses such as loitering or panhandling;
  • the costs of lost income and/or lost productivity of family members struggling to care for persons with serious mental illness.


The National Institute of Mental Health (NIMH) conservatively estimates the total costs associated with serious mental illness to be in excess of $300 billion per year. This amount includes:

  • $193.2 billion in lost income due to disability;
  • $100.1 billion in healthcare expenditures;
  • $24.3 billion in disability benefits.