The hospital-discharge cost cycle for people experiencing homelessness
People experiencing homelessness cost significantly more per hospital stay, are readmitted at far higher rates after psychiatric discharge, and rely on emergency departments as their entry point into care far more than the general population — a pattern researchers and hospital-based programs describe as a preventable cycle rather than an unavoidable cost of homelessness itself.
The finding
The Canadian Institute for Health Information found that, in 2022-2023, nearly 30,000 hospitalizations
across Canada were coded for homelessness, with an average cost of $16,785 — more than double the
national average hospitalization cost of $7,803. Admission via the emergency department was very common
(93%), which CIHI itself describes as suggesting inadequate access to primary care [CL-189, CL-190].
A Toronto-specific peer-reviewed study of 93,426 admissions at one academic teaching hospital over five
years found that, after adjusting for age, gender, and resource-intensity weight, homeless patient
admissions cost $2,559 more on average than housed patient admissions ($13,516 vs. $12,555 unadjusted
mean); for admissions to the psychiatric service specifically, the excess cost was $1,058 even after
adjusting for length of stay CSRL2-418.
The readmission pattern compounds the cost. A population-based Ontario cohort study of 91,028 psychiatric
hospitalization discharges (2011-2014) found that homeless individuals at discharge had a 30-day
readmission rate of 17.1%, against 9.8% for non-homeless individuals, and a 30-day emergency department
visit rate of 27.2%, against 11.6% — while also being over 50% less likely to have a follow-up psychiatrist
visit CSRL2-419. Cold weather adds a further, specific driver: a Unity Health Toronto and ICES study found
people experiencing homelessness are 14 to 18 times more likely to visit emergency departments for cold
weather-related injuries than the general population CSRL2-320.
One Toronto hospital-based response, the Navigator Program, illustrates both the scale of the problem at a
single site and a documented mitigation approach. In fiscal 2023-2024, that hospital alone recorded 903
admissions linked to 638 unique people experiencing homelessness, and 10,190 emergency department visits
by 3,527 unique people experiencing homelessness — a higher volume than any other Toronto hospital. A 2025
qualitative implementation study of the program found that non-clinical outreach workers with direct,
homelessness-specific experience, working alongside hospital staff to connect patients to follow-up care,
were a key facilitator of the program's success CSRL2-236.
A fresh S1 discovery this pass (T-0065 batch 5) finds real international cost-effectiveness data this
page had previously been unable to confirm. An NIHR-funded English economic evaluation compared three
hospital discharge/intermediate-care service configurations for homeless patients: a housing-led,
community step-down model proved far more cost-effective than clinically-led alternatives, at GBP 4,743
per QALY gained versus GBP 55,602 (clinically-led, no step-down) and GBP 14,515 (clinically-led,
residential step-down); when service delivery costs were included, the housing-led model was cost-saving
overall from a broader public-sector perspective. This lends independent, cross-national support to the
Navigator Program's own documented success factor above: non-clinical, homelessness-experienced staff
outperforming a purely clinical model [CL-90679].
Why it matters
These figures describe a specific, quantified cycle: homelessness drives disproportionate emergency department reliance (CIHI's own conclusion, not an inference), that reliance costs measurably more per admission even after adjusting for other factors, and psychiatric discharge in particular routes people back into the same system at roughly double the readmission rate without adequate follow-up care. The one hospital examined in detail here shows this is not a diffuse, system-wide abstraction — it is concentrated enough at a single site to justify a dedicated program, and that program's own documented success factor (non-clinical staff with direct homelessness experience) points to a specific, replicable intervention design rather than only a funding gap.
What this page does not cover
This page now has real international cost-effectiveness figures (see above), found via a freely-accessible mirror of the same underlying NIHR research programme after the originally-cited PMC link's bot-check interstitial blocked direct access. It still does not include a Toronto- or Ontario-specific costed estimate for what a broader discharge-intervention program would cost to run locally at scale — the NIHR figures are England-specific and not directly transferable to this jurisdiction's cost structure. It does not cover Dunn House (Canada's first hospital-led supportive housing site, opened October 2024), a related but distinct capital-project response that exists elsewhere in this library's research trail and would fit a future, dedicated page. It does not evaluate whether the Navigator Program's facilitators generalize to hospitals outside the one studied.
Sources
- Canadian Institute for Health Information, Homelessness and hospital use, April 25, 2024 (
RES-0142). - Unity Health Toronto, news release on cold weather-related emergency department visits, July 2023
(
RES-0101). - Homeless Hub, Hospital Costs and Length of Stay Among Homeless Patients Admitted to Medical, Surgical,
and Psychiatric Services (
RES-0157). - PMC, population-based cohort study of psychiatric discharge readmission in Ontario (
RES-0168). - BMC Health Services Research, qualitative implementation study of the Navigator Program, 2025
(
RES-0021). - NIHR Health and Social Care Delivery Research programme, realist evaluation and economic evaluation of
homeless hospital discharge services in England, via NCBI Bookshelf (
RES-1112).