“The program for homeless mentally ill adults has served more than 13,000 men and women since November 1999. As of Jan. 31, the program had 4,444 participants. They showed marked improvement in several areas over their pre-enrollment days, according to the organization that evaluates the program for the state. Program participants had:
81% fewer days of incarceration.
65% fewer days of psychiatric hospitalization.
76% fewer days of homelessness.
162% more days of employment.”
Source: National Mental Health Assn. of Greater Los Angeles
Bottom line. Is it cheaper to put them in insane asylums or to put them through these programs? You have to factor in the costs you mentioned, crime reduction, etc.