Objective: It is unclear whether the additional benefits of receiving depre
ssion treatment from mental health specialists in routine care pays for the
additional costs, compared with treatment delivered by general medical pro
viders, This study examines the difference in lost earnings and the differe
nce in treatment costs experienced by depressed individuals treated in thes
e two sectors, Method: Representative community residents with depression w
ere recruited and interviewed at baseline and at 6-month and 12-month follo
w-ups, Lost earnings were measured by lost workdays multiplied by subjects'
wage rates, Treatment costs were approximated by charges abstracted from p
rovider and insurance records. Results: After controlling for sociodemograp
hic variables, baseline severity, and baseline comorbidity, the authors fou
nd a net mean annual economic savings of $877 associated with depression tr
eatment delivered in the mental health sector compared with the general med
ical sector. Sensitivity analyses in alternative scenarios indicated simila
r savings. Conclusions: Although it is the trend for primary care providers
to provide mental health services, these analyses indicate a net economic
savings if depression treatment is provided by mental health specialists, p
robably as a result of patients' greater functional improvement. As gatekee
pers, especially in managed care, primary care providers have a unique resp
onsibility to identify and detect patients with mental health problems. In
the current structure, however, they may lack the necessary time to provide
effective mental health services. Therefore, mental health specialists pla
y a crucial role, with primary care providers' cooperation (i.e., detection
, consultation, and referral), in providing the most cost-effective mental
health services.