Lexington, KY — Faculty researchers at the University of Kentucky College of Social Work (CoSW) have released compelling findings that affirm the effectiveness and fiscal responsibility of Kentucky’s Assisted Outpatient Treatment (AOT) program.
The multi-year evaluation, led by Dr. Aaron Brown and Dr. Aubrey Jones, offers robust evidence that AOT not only reduces healthcare utilization and Medicaid costs but also supports long-term stability for individuals living with serious mental illness (SMI) across the state.
Kentucky’s AOT initiative was established under Tim’s Law, and functions as a civil court-ordered program that ensures individuals with SMI receive comprehensive, community-based mental health services. This includes case management, psychiatric support, counseling, and linkage to housing and vocational resources.
Researchers analyzed Medicaid billing data for 74 participants enrolled between January 1, 2018, and March 31, 2024, examining healthcare usage before, during, and after AOT participation.
Key findings demonstrate a clear trajectory of improvement:
- Hospitalizations decreased by 67% following AOT participation.
- Medicaid spending dropped by 66% during the program.
- After program completion, costs remained 55% lower than pre-AOT levels.
- Healthcare encounters decreased by 48% from pre- to post-AOT periods.
“These findings show AOT’s value as a stabilizing force in both individual lives and the larger healthcare system,” said Jones. “The program not only connects people with needed care—it reduces crisis events, hospital stays, and interactions with the justice system.”
The data also highlights a shift in quality-of-life indicators. According to participant feedback, 90% of individuals reported feeling more capable of handling daily life. Reductions in jail time, homelessness, and emergency room visits were also observed.
“Too often, individuals with SMI cycle through hospitals and jails without access to long-term solutions,” noted Brown. “AOT gives them the structure and support to break that cycle, and it saves taxpayer dollars in the process.”
in partnership with Kentucky’s Cabinet for Health and Family Services, Department for Behavioral Health, Developmental and Intellectual Disabilities and funded by the Substance Abuse and Mental Health Services Administration (SAMHSA), offering policymakers actionable insight into the benefits of continuing and expanding the AOT model across the state.
As Kentucky faces increasing mental health needs, the CoSW findings make a strong case for continued investment in evidence-based, community-integrated solutions.
For more information on Assisted Outpatient Treatment in Kentucky, visit: https://dbhdid.ky.gov/mh/aot.
