Study finds Ontario Clubhouse Model cuts hospitalizations by 78%

HN Summary

• A new study led by the University of Toronto found Ontario’s Clubhouse model reduced members’ self-reported mental health hospital days by 78% over two years, from 1,850 to 407 days among 101 participants.

• The reduction in hospital use generated cost savings that more than offset the cost of operating the program, suggesting the model can effectively pay for itself.

• Programs like Progress Place provide wrap-around supports—including employment, education, housing and peer connection—helping people with complex mental health challenges recover in the community.

A new Canadian study is shedding light on a community-based mental health model that not only supports recovery but may also significantly reduce strain on the health-care system.

Published on February 23, 2026, and led by researchers at the University of Toronto, the study presents the first economic evaluation in Canada of the internationally recognized Clubhouse model. The two-year analysis found that participants in an Ontario-based Clubhouse program reported dramatically lower use of hospital services after joining—reducing mental health hospitalizations by 78 per cent.

The evaluation followed 101 members over a two-year period. Before joining the program, these individuals collectively reported spending 1,850 days in hospital. After two years of participation, that number dropped to 407 days. The resulting cost savings to the health system more than offset the cost of operating the program for those new members, suggesting the model has the potential to pay for itself while improving lives.

“Mental illness presents a significant challenge for health systems,” said Dr. Rebecca Hancock-Howard, co-author and adjunct professor at the University of Toronto. “This study shows that the Clubhouse program can play a larger role in the solution given it is cost-effective, provides holistic mental health recovery supports and reduces the time people spend in hospital.”

What is the Clubhouse model?

The Clubhouse model is a community-based approach to mental health recovery designed for people living with serious mental illness. Originating in the mid-20th century and now implemented in hundreds of locations worldwide, the model is built around the idea of membership rather than treatment. Individuals are not considered patients or clients—they are members of a community.

Clubhouses operate as structured, supportive environments where members and staff work side-by-side in the daily operations of the organization. This “work-ordered day” can include administrative tasks, cooking, outreach, employment support and program development. The goal is to foster purpose, routine, skill-building and social connection—factors known to support recovery.

In addition to meaningful daily activity, Clubhouses provide wrap-around services including employment programs, education support, housing assistance and peer support. Many programs, including Toronto’s Progress Place, operate with no wait list and emphasize long-term relationships and community inclusion.

“For more than 40 years, Progress Place’s work has been grounded in the Clubhouse program, providing no wait list wrap-around supports in the community to Ontarians experiencing complex mental health challenges,” said Criss Habal, Executive Director of Progress Place. “The program invites people into an inclusive community where they are surrounded by peers and can access education, skills development, employment and housing—putting them in a better position to begin their mental health recovery journey.”

Economic and social impact

While this is the first Canadian economic evaluation of the Clubhouse model, similar findings have emerged internationally. A recent U.S. study found that individuals with four years of Clubhouse participation who attended three times per month saved an average of $11,374 annually in health-care costs compared to non-participants. For individuals living with schizophrenia, annual savings reached $22,610.

The new Canadian findings arrive at a time when policymakers are searching for scalable, cost-effective solutions to address rising mental health needs. Researchers note that further study is needed to examine the model’s broader economic impact, including effects on employment income and reliance on income support programs such as the Ontario Disability Support Program.

Beyond the financial implications, members describe profound personal change.

“When I was first referred to come here and check it out, I did not know what Progress Place was all about,” said Kobi, a member of the program. “After joining, it gave me a sense of hope and purpose and gave me the courage to go back to work through the employment program. I was unemployed for six years when Progress Place reached out to me to try a transitional employment placement. It gave me a lot of hope and confidence in myself that I could do anything.”

Mental health leaders say the model fills critical gaps in the system—particularly outside traditional office hours.

Dr. Nicole Kozloff, a psychiatrist at the Centre for Addiction and Mental Health and Associate Professor in the Department of Psychiatry at the University of Toronto, highlighted Progress Place’s leadership in evaluation and innovation. In response to increasing loneliness and a lack of after-hours supports, the organization launched a Warm Line—a confidential, non-crisis peer-support service available evenings, weekends and holidays across Ontario. The service now fields more than 20,000 calls annually, offering support that can help prevent unnecessary emergency department visits.

“As a psychiatrist and researcher who studies mental health services, I see firsthand how hard it can be to access high-quality, evidence-based mental health care,” said Dr. Kozloff. “As a Board Member, I’m so proud of the work Progress Place does, and as a mental health provider, I’m grateful that it is there for my patients.”

As Canada continues to grapple with a growing mental health crisis, the findings suggest that community-based recovery models like the Clubhouse approach may offer not only compassion and connection—but measurable system-wide impact.