Chapter 4
Youth mental health
Introduction
4.1       
The Government's 2011–12 Federal Budget mental health reforms focus in
part on addressing the needs of people identified as not always receiving
adequate mental health services (see Chapter 1).[1]
Young people were identified as one of these groups not receiving adequate
mental health care.[2]
To address their needs, the Budget included expansion of:
- 
headspace; and
- 
Early Psychosis Prevention and Intervention Centres (EPPIC).[3]
4.2       
While much of the commentary about headspace and EPPIC links the
two programs, there are fundamental differences between them. EPPIC is an early
intervention program specifically targeting young people with a psychotic
illness, whereas headspace is a holistic model of providing mental
health care to young people. This chapter provides background information about
each program, its funding in the 2011–12 Federal Budget, and commentary from
submitters about such funding. It then addresses more general concerns raised
about the provision of youth mental health funding in the 2011–12 Federal
Budget.
headspace
4.3       
headspace is a model of delivering integrated mental health
services to young people by co-locating specialist and primary health services
at headspace centres.[4]
headspace's vision is: 
  To improve the mental and social wellbeing of young
    Australians through the provision of high quality early intervention services,
    that are welcoming, friendly and supportive.[5]
4.4       
  Health professionals at the centres—including GPs, psychologists, social
  workers, mental health nurses and occupational therapists—are either directly
  employed through headspace core funding, or self-funded through MBS
  items or private billing.[6]
4.5       
headspace targets 12–25 year olds with a mild to moderate mental
disorder, and seeks to assist them across four key areas:
- 
General health;
- 
Mental health and counselling;
- 
Alcohol and other drug services; and
- 
Education, employment and other services.[7]
4.6       
headspace was established in 2006 with Commonwealth funding and
currently delivers services at 30 centres across all states and territories.
Its original Foundation Executive Committee was formed with the assistance of Orygen
Research Centre, the Australian Psychological Society, the Australian General
Practice Network, the Brain and Mind Research Institute at the University of
Sydney and the University of Melbourne, all of which are now represented on the
headspace board.[8]
The board assumed governance of headspace in 2009 when it became a
company limited by guarantee, with charitable (not for profit) status.[9]
Core funding continues to be provided via the Department of Health and Ageing Youth
Mental Health Initiative Program.[10]
Funding for individual headspace centres is awarded by the headspace
Grants Committee via a competitive process. Tenders are made by lead agencies
on behalf of a consortia of government and non-government organisations.[11]
4.7       
In 2008–2009, the Social Policy Research Centre at the University of New
South Wales (UNSW) conducted an Independent Evaluation of headspace. The
Headspace Final Evaluation Report, released in June 2009, commented on
the extent to which headspace centres assist young people with mental
health issues with respect to the four key areas (above).
4.8       
The Report notes that headspace has improved mental health
services for young people, especially early-intervention services for people
aged 12–17. The Report attributes these positive outcomes to
  effective engagement of young people via good CA [Community Awareness]
    and high quality, youth-friendly services.[12]
4.9       
  The Report also provided a number of 'lessons and recommendations'
  suggesting ways in which headspace could improve its service delivery. Some
  of these are particularly relevant to the present inquiry because they relate
  to issues that also arose in relation to wider budget changes. These include
  timeframes for service delivery, the need to engage target groups and funding
  issues:
- 
CYSs [headspace centres] require 9–12 months to become
fully operational, including 6–7 months for set-up and establishment and 3–6
months to recruit a full complement of staff and refine policies and
procedures.
- 
As CYSs have now established themselves as service providers
within their communities, it is important that they ensure their services are
engaging 'hard to reach groups', for example, young people in the lowest
socio-economic status groups, those with limited family support, refugee
communities and Indigenous young people.
- 
The sustainability of CYSs, which will only be achieved with
strong clinical governance, cost-effective models that draw on a diverse range
of funding sources, some core [Commonwealth] funding, engagement with the
community and demand for the service from young people.
- 
CYSs in remote areas will require a very high proportion of core
funding.[13]
Budget increases to headspace
funding
4.10     
In the 2010–11 Federal Budget, the Government funded 30 new headspace
centres. The locations of ten of these centres have been determined and
these centres are expected to be operational by December 2011.[14] 
In the 2011–12 Federal Budget, the Government substantially increased headspace
funding. The new measures ($197.3 million over the next five years) provide
for the establishment of 30 new headspace centres, and will increase
funding across all headspace centres. The Government intends for a total
of 90 sustainable headspace centres to be operational by the end of the
forward estimates period.[15]
4.11     
headspace's submission to the inquiry welcomed the additional
funding but noted that the rationalisation of Better Access, particularly the
changes to MBS mental health treatment items, is likely to add to existing
workforce issues with respect to attracting GPs to headspace centres.
  Attracting GPs is already a considerable challenge,
    particularly in areas of GP shortage. headspace, across its 30 centres,
    has a full time equivalent of only eight GPs. headspace centres
    are finding it increasingly difficult to recruit GPs as there are not
    sufficient incentives for GPs to work in youth mental health. We believe that
    with the current systems and initiatives in place, it is not financially viable
    for GPs to work with young people. Many GPs are not comfortable working with
    this client group in general, and financial disincentives exacerbate this
    reluctance.[16]
4.12     
  headspace CEO Mr Chris Tanti expressed concern that GPs may
  reduce their availability to practice at headspace centres once the
  proposed cuts are implemented:
  Mental health treatment plans are a core activity for GPs
    working in a headspace centre. For example, analysis of 28 out of our 30
    centres showed that in the last financial year item No. 2710, for a 40-minute
    preparation of a mental health treatment plan, equated to over one quarter of
    the total GP revenue billed at headspace centres...
  The majority of GPs who are working in our centres are very
    passionate about working with young people...So I suspect they will not leave
    entirely but they will reduce the amount of time they have available at headspace.[17]
4.13     
  Rather than a reduction to MBS rebates, headspace suggested that a
  specific MBS item be introduced for the provision of youth mental health
  services in order to encourage GPs to work with young people with mental health
  needs.[18]
  This would provide an incentive for practitioners to train in headspace models.[19]
  As Mr Tanti explained: 
  What they are saying to me is that they are already not
    remunerated appropriately given that they are often doing well in excess of 60
    minutes... An obvious solution would be
    to have a particular item number in this space—a youth mental health or a youth
    health item number. I know that in New South Wales they have been arguing for
    this for some time, and it makes perfect sense to me.[20]
4.14     
  Prominent mental health policy advocate, academic and headspace board
  member Professor Ian Hickie also expressed concern about mental health
  workforce issues in relation to headspace. Professor Hickie supported
  the budget changes to Better Access—although considered that they do not go far
  enough—and suggested that a reformed ATAPS might better address workforce
  issues than the 'old Better Access model [which] is poor spending and poor
  planning'.[21]
  Professor Hickie considered that better underlying incentive structures alongside
  genuine commitment from professionals would address issues that arise in the
  delivery of headspace services as well as more systemically in the
  mental health system:
  Many of the problems with ATAPS and seemingly with headspace—and
    I am sure this will happen with the new services—stem from having models that
    reward GPs, clinical psychologists and mental health nurses for working in
    those new frameworks instead of working in isolated single practices in the
    better resourced suburbs in our major cities. At the moment, we do not have the
    investments of people power under preferential schemes in those areas such as headspace
    and what will be the new early psychosis programs. That has been the problem
    with ATAPS. A lot of the criticism of ATAPS, particularly by the professions,
    is highly self-serving. We need those professions to actually align themselves
    with the transformational projects and we need a government that is serious
    about putting the incentives, the allocations of workforces, particularly training
    workforces in medicine, general medicine, psychiatry and psychology and nursing
    in those transformational centres.
4.15     
  Conversely, the Australian Medical Association (AMA) suggested that
  increased funding to headspace should not come at the expense of Better
  Access. AMA anticipated that the time likely to elapse before new headspace centres
  are operational would suggest continued support to other initiatives in the
  interim is justified.[22]
4.16     
Some submitters were opposed to the substantial additional funding for headspace
on the basis that a wider range of youth services should have been
considered for additional funding. The Australian Clinical Psychology
Association (ACPA) submission states:
  While additional investment in child and youth mental health
    is vital, we are concerned that 85% of the $491.7 million funding to boost
    services for children and young people has been allocated to two models of care—EPPIC and headspace—to the
    exclusion of other treatment programs which may also be of significant
    value to the broader community, and which may have a more substantial evidence‐base.[23]
4.17     
  However, the ACPA submission did not mention the alternative programs it
  considers of significant value. Similarly, the Psychologists Association (South
  Australian Branch) expressed concern about headspace funding but did not
  present a specific alternative for youth mental health care.[24]
  The Australian Association of Psychologists inc. (AAPi) suggested that headspace
  and EPPIC received increased funding because they are high profile
  initiatives, but that Better Access has been more effective: 
  [W]e agree that EPPIC and headspace are very good
    programs and that they deserve to be funded. But there is plenty of evidence
    for Better Access as well... 
  [G]enerally speaking, there is strong evidence for Better
    Access to take that; better evidence, I think, than there has been for the
    other programs.[25]
4.18     
  This concern about the rationalisation of Better Access was also
  expressed by witnesses who supported headspace. These submitters drew
  parallels between the effectiveness of headspace and the availability of
  MBS items for GPs. The Royal Australian College of General Practitioners (RACGP)
  and the Australian General Practice Network explained to the committee that
  cuts to Better Access would reduce the provision of mental health care to young
  people at headspace centres.[26]
  These organisations considered that higher MBS items make it viable for GPs to
  provide care to people who would be unable to make significant gap payments
  themselves. RACGP considers that Better Access MBS items directly enable GPs to
  provide mental health services to lower-income target groups via models such as
  headspace:
  headspace...is largely staffed by GPs using the very
    items that are going to be reduced.[27]
4.19     
  Several organisations representing health professionals—apart from GPs—and
  consumers also welcomed headspace funding. These included the Mental
  Health Council of Tasmania and the Federation of Ethnic Communities' Councils
  of Australia (FECCA) which further suggested that such funding should in part
  be directed towards assisting young people from Culturally and Linguistically
  Diverse backgrounds.[28]
  The National and NSW Councils for Intellectual Disability and Australian
  Association of Developmental Disability Medicine suggested that headspace
  should be better equipped to cater for people with co-occuring intellectual
  disability and mental health needs.[29]
4.20     
Many organisations with direct experience of the headspace model
supported the funding increase. The Australian Counselling Association has
members who work at headspace centres and EPPIC and welcomed the
expansion of the program.[30]
The Consumers Health Forum considered that the initiative provides effective
early-intervention services to young people, but sought reassurance that
ongoing evaluation will take place to ensure services continue to be
well-targeted.[31]
Other groups supportive of headspace included Mission Australia, the Royal
Australian and New Zealand College of Psychiatrists and the Australian Nursing
Federation (Victoria Branch).[32]
Early Psychosis Prevention and Intervention Centre (EPPIC)
4.21     
The origins of EPPIC date from the 1988 establishment of a ward in the Aubrey-Lewis
Unit at Royal Park Hospital dedicated to the treatment of young people
hospitalised after their first episode of psychosis. The provision of targeted,
early intervention care to young people developed into the EPPIC model which
was officially founded in 1992 under the Directorship of Professor Patrick
McGorry.[33]
4.22     
EPPIC facilitates care to young people (aged 15–24) living in West and
North West Melbourne at risk of or exhibiting psychotic illness, and their
families and carers. Referrals to the service may be made by any person, and referred
young people are subsequently invited to an assessment to determine if EPPIC
can most effectively address their needs. If so, an Outpatient Case Manager
(OCM) will be assigned to the person, a care plan developed and care services
facilitated for a period of two years. The EPPIC model aims to prevent young
people from needing to be hospitalised, but if it does become necessary, the
Inpatient Psychiatric Unit (IPU) in Footscray can accommodate 16 people.[34]
Specialist intervention services provided by EPPIC are modelled on collaborative
and continuing care and with a focus on the early 'critical period' considered
to be crucial in the management of and recovery from psychosis.[35]
4.23     
Over the past 19 years the EPPIC model has grown and expanded in Melbourne
and internationally. Orygen Youth Health (OYH) was established in 2001,
building on the EPPIC model to provide care to young people experiencing other
major (non-psychotic) mental illnesses. EPPIC is now a sub-clinic of OYH.[36]
In 1996, the first International Conference on Early Psychosis was held and the
International Early Psychosis Association was formed in 1997. Early
intervention care based on the EPPIC model is now provided by clinics in North
America and Europe.[37]
EPPIC funding in the 2011–12
Federal Budget
4.24     
In the 2010–11 Budget, the Federal Government committed to funding four
additional EPPIC sites in partnership with interested states and territories.  The
2011-12 budget changes commit the Government to engage the states and
territories to share the cost of funding and supporting an additional 12
centres, bringing the total number of centres to 16.[38]
The Federal Government commitment amounts to $222.4 million over the next five
years.[39]
4.25     
While no formal partnership with the states or territories has been announced,
the Department of Health and Ageing informed the Community Affairs Legislation
Committee during the 2011–12 Budget Estimates hearing that there has been
'strong interest...on the EPPIC rollout' from the states and territories.[40]
The Department also indicated that the states and territories had committed to
early intervention psychosis services in the National Mental Health Plan
2009–2014.[41]
4.26     
The submission from Orygen Youth Health itself welcomed the measure and
provided the following specific recommendations that it considers will 'ensure
national governance and implementation of the EPPIC measure comprehensively
addresses issues of quality, accountability, model fidelity, project selection
and workforce and system development':
- 
Providing capable, committed and accountable national leadership
to drive quality and strong model fidelity across all new EPPIC services;
- 
Ensuring new EPPIC services are selected on the basis of being
the candidates best equipped for success in terms of impact potential, quality
of local leadership and local availability of expertise and resources;
- 
Supporting new EPPIC services to develop the skills and culture
to provide high quality care consistent with Australian Clinical Guidelines for
Early Psychosis; and
- 
Ensuring the availability of clear and reliable outcome measures through
ongoing evaluation and monitoring.[42]
4.27     
In agreement with OYH, Consumers Health Forum supported the expansion of
EPPIC on the condition that it—as well as headspace—is subject to
regular evaluation:
  CHF welcomes the commitment to these services, particularly
    the significant expansion of the number of EPPIC sites, in recognition of the
    current poor management of youth psychosis...
  Thorough evaluation will ensure that the ongoing
    administration of these services will be appropriate.[43]
4.28     
  Submitters supportive of the expansion of EPPIC included South
  Australia's Office of the Commissioner for Social Inclusion,[44]
  Mission Australia,[45]
  and the Royal Australian and New Zealand College of Psychiatrists.[46]
4.29     
Other submitters raised concerns about the extent to which EPPIC
addresses the needs of people with mental illnesses across the population. As
noted above, the Australian Clinical Psychology Association was concerned about
the large amount of funds being allocated to just the two programs (headspace
and EPPIC).[47]
Catholic Social Services Australia considered that early intervention for young
people is important, but was concerned about the reach of EPPIC and headspace
beyond major cities:
  At least some of the proposed new services should be placed
    in rural and remote locations. In addition, the model needs to be flexible enough
    to be responsive to local needs and priorities, rather than being developed and
    imposed in accordance with what has worked in a metropolitan area.[48]
4.30     
  The Melbourne Children's Psychology Clinic expressed concern that the
  target group for EPPIC, young people experiencing or at risk of experiencing
  their first psychotic episode, is a relatively small part of the total youth
  population with mental health needs:
  [I]t is estimated that only 2 per cent of people will
    experience a psychotic episode at some stage in their life...
  This is a significantly small proportion of children and
    adolescents compared with estimates of anxiety, depression and other common
    childhood disorders that cause significant distress and significantly impact on
    daily level of functioning. For example, Dadds et al., (2000) noted twelve month
    prevalence rates ranging from 17 per cent to 21 per cent in childhood anxiety
    and furthermore, that around 8 per cent will be significant enough to require
    treatment...[49]
4.31     
  The AMA expressed concern about the time it would take to create the new
  headspace centres, but also queried what will become of the initiative
  if the states and territories do not enter into a partnership with the
  Commonwealth as envisaged.
Research on early intervention
4.32     
Early intervention for young people at risk of or exhibiting a first psychotic
illness is not a settled field of medicine. There is debate within the psychiatry
profession, as well as the broader community, about how to approach early
intervention for psychosis.
4.33     
An Access Economics analysis undertaken on behalf of Orygen Youth Health
found that early intervention is effective in the 'critical [early] period':
  Access Economics estimated there will be some 5,320 FEP new
    incidences per year in Australia...
  For this cohort, if EI was universally available...the net
    present value of savings over the critical period would be $212.5 million
    ($82.5 million in financial savings and $130 million in reduced burden of
    disease).[50]
4.34     
  The committee is also aware that there are some in the medical community
  who have suggested that advocates of early intervention are 'undoubtedly
  overstating the evidence'.[51]
  Louise Newman, past president of the Royal Australian and New Zealand College
  of Psychiatrists, was recently reported saying the 'focus on early intervention
  was too narrow and could lead to young people being overmedicated, prematurely
  diagnosed and stigmatised'.[52]
4.35     
The current debate over the evidence base supporting early intervention
in psychosis is reflected in current discussion about revising the Diagnostic
and Statistical Manual of Mental Disorders (DSM). There is currently a proposal
to include in the DSM a 'psychosis risk syndrome'.[53]
This proposal is fiercely contested. The former chair of the task force that
presided over the last revision of the DSM in the 1990s, Professor Emeritus
Allen Frances, has said of the proposed revisions that: 'DSM5 would create tens
of millions of newly misidentified false positive "patients", thus
greatly exacerbating the problems caused already by an overly inclusive DSM4'. Professor
Frances is most critical of the proposal for psychosis risk syndrome:
  The Psychosis Risk Syndrome is certainly the most worrisome
    of all the suggestions made for DSM5. The false positive rate would be
    alarming―70% to 75% in the most careful studies and likely to be much
    higher once the diagnosis is official, in general use, and becomes a target for
    drug companies. Hundreds of thousands of teenagers and young adults
    (especially, it turns out, those on Medicaid) would receive the unnecessary
    prescription of atypical antipsychotic drugs. There is no proof that the
    atypical antipsychotics prevent psychotic episodes, but they do most certainly
    cause large and rapid weight gains (see the recent FDA warning) and are
    associated with reduced life expectancy―to say nothing about their high
    cost, other side effects, and stigma.
  This suggestion could lead to a public health catastrophe and
    no field trial could possibly justify its inclusion as an official diagnosis.
    The attempt at early identification and treatment of at risk individuals is
    well meaning, but dangerously premature. We must wait until there is a specific
    diagnostic test and a safe treatment.[54]
4.36     
  James Phillips, associate clinical professor of psychiatry at the Yale
  School of Medicine, recently expressed similar concerns regarding:
  the controversies surrounding these diagnostic categories,
    involving the question of creating populations of false-positive patients who
    would be subjected both to diagnostic mislabeling and unwarranted, potent
    medications.[55]
4.37     
  While there may be concerns about the description of disorders and the
  consequences, there has been for some years now research on early intervention
  to address psychosis, with some positive results. Nevertheless, a review of the
  literature in 2010 observed:
  Despite initially encouraging results concerning the
    predictive validity of [psychosis risk syndrome] criteria, recent findings of
    declining conversion rates demonstrate the need for further investigations.
    Results from intervention studies, mostly involving second-generation
    antipsychotics and cognitive behavioral therapy, are encouraging, but are
    currently still insufficient to make treatment recommendations for this early,
    relatively non-specific illness phase.[56]
4.38     
  Underpinning this policy debate are fundamental questions about whether
  there are identifiable underlying biological processes associated with
  psychosis or not; and a debate about whether identifying people at high risk of
  developing psychosis actually helps ensure appropriate intervention.[57]
  Some suggest, of psychosis, that 'there has never been an underlying disease
  process to be identified',[58]
  while others think this to be an open question, worthy of continued research.[59]
4.39     
Despite the debate, there are significant points of agreement,[60]
and the committee notes that the focus of the EPPIC model is not exclusively on
prevention, but represents a broader model. The EPPIC model recognises that:
  Preventative intervention can occur in the three key phases
    of early psychosis:
  1. The "at-risk" phase, when symptoms are subtle
    and can be confused with adolescent development issues
  2. The period of frank symptoms of psychosis that remains
    untreated, which may compound the issues of risk and the development of
    prolonged disability
  3. The critical period after the onset of the first psychotic
    episode, which can be up to five years in duration, when treatment needs to be comprehensive
    and phase-specific.[61]
4.40     
  Early Psychosis Prevention and Intervention Centres address the needs of
  young people with, or at risk of developing, a psychotic illness. As discussed
  earlier, service gaps do exist in the care of people with severe mental illness
  and the Government's commitment to EPPIC is welcome in this context. 
4.41     
Psychosis can be debilitating and contributes to a heavy disease burden,
disproportionately borne by the young. Early intervention is a worthwhile
objective, provided it:
  - Is carefully based on published research and
    evidence;
- Engages with the full range of views in the
    research and clinical community;
-  Involves multi-disciplinary teams;
-  Includes a substantial role for psycho-social
    interventions; and
- Actively engages patients and families.
4.42     
  There is some disquiet around the funding of EPPIC, however the
  committee believes the above conditions are being met. The committee did not
  receive evidence to suggest that the EPPIC model involved inappropriate
  prophylactic use of anti-psychotic drugs, which is a particular point of
  concern in some quarters.
4.43     
It will be important for EPPIC to publish regular reports that outline
its operations and that there should be an external clinical review after an
appropriate period, to help ensure that the EPPIC program reflects the range of
results in the research literature of what is a fast-evolving field.
4.44     
It is also essential that the significant funding directed to EPPIC
demonstrably delivers cost-effective, good health outcomes. In this respect the
committee holds some reservations:
- 
An independent evaluation of the cost-effectiveness of EPPIC has
not been carried out.
- 
There is no guarantee that the Government's commitment to EPPIC
will be matched by state and territory funding, and therefore no guarantee that
the Government will be able to fully deliver its planned expansion to EPPIC.
- 
It is likely that EPPIC will be unable, at least in the short
term, to deliver services to people outside metropolitan areas. In this respect
the committee continues to urge the Government to identify or develop
strategies to meet the needs of young people in rural and remote areas.
Recommendation 1
4.45     
The committee supports the increased funding to EPPIC and headspace in
the 2011–12 Federal Budget on the proviso that this significant policy
transformation be evaluated after two years. However, the committee urges the
Government to identify or develop strategies that will address the need for
early psychosis prevention and intervention in rural and remote areas.
		  
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