Expanding access to employer‑funded virtual mental health care could reduce the economic impact of mental health challenges in Canada by an estimated $22 billion annually, according to a new study. The cost-benefit analysis, conducted by economic research firm AppEco based on Dialogue‘s integrated care model, found that deploying employer-funded virtual mental health care could significantly reduce the economic burden of mental health issues in Canada by 29% while improving access to care for employees.
The report said mental health challenges affect about 1 in 5 Canadians, yet nearly half of those who meet the criteria for a mood, anxiety, or substance‑use disorder do not receive professional care. The report, 13x the ROI: The business case for virtual mental health care, evaluates the economic and societal impact of expanding access to employer-funded virtual mental health care. It found that increasing access to mental health care by just 10% through employer‑funded virtual services could reduce the number of untreated cases and help people get support sooner.
According to the report’s economic model estimates, employer-funded virtual mental health care could deliver a return on investment (ROI) of up to 13-to-1, with the actual figure varying by industry, geography, wage level, and program engagement. For example, for a company with 500 employees, the analysis projects an average net gain of $635 per employee, per year. At a national level, the study estimates that mental health issues cost the Canadian economy about $76 billion annually, largely due to lost productivity. The analysis found that better access to virtual care could reduce average costs for treated individuals by more than 50%, as people are connected more quickly to the appropriate type of care.
Dr. Marc Robin
“Mental health care must be accessible, timely, and integrated,” said Dr. Marc Robin, Medical Director at Dialogue. “This analysis shows that when care is delivered through a coordinated virtual model, we not only improve outcomes for patients, but we also generate measurable benefits for employers and society. Expanding access is fundamentally about improving people’s health, while also strengthening workplaces and the broader economy.”
While the economic benefits are significant, the study highlights the human impact of expanding access. Virtual care reduces wait times, removes geographic barriers, and improves continuity of care, helping employees receive appropriate support earlier and more efficiently, said the report.
The study also examines the potential impact of employer‑funded virtual mental health care on governments, employers, and individuals, including changes to healthcare spending, medication costs, missed workdays, and productivity losses. By improving access and care coordination, virtual models can meaningfully reduce absenteeism and presenteeism, which together account for the majority of mental health–related costs in Canada.
Julien Mc Donald-Guimond
“Our findings demonstrate that employer-funded virtual mental health care can generate net benefits at scale,” said Julien Mc Donald-Guimond, Vice-President and Economist at AppEco. “By enabling earlier intervention and more efficient care delivery, the model reduces long-term costs while improving well-being. From both a public policy and employer perspective, the return on investment is substantial.”
As mental health continues to be one of the most pressing health and economic challenges in Canada, the findings suggest that employer-sponsored virtual care models can play a critical role in strengthening workforce resilience, supporting public systems, and improving access to care nationwide.
Estimated Annual Economic Savings from Virtual Mental Health Care in Canada
Region | Estimated annual economic costs of mental health issues | Estimated annual economic costs with expanded virtual mental health care | Estimated annual economic savings | Estimated net economic gain per employee annually |
Canada (total) | $76.01B | $53.77B | $22.2B | $635 |
West | $24.77B | $17.49B | $7.3B | $649 |
Ontario | $29.01B | $20.52B | $8.5B | $616 |
Québec | $15.74B | $11.12B | $4.6B | $602 |
East | $4.53B | $3.20B | $1.3B | $582 |
Source: AppEco — Cost‑Benefit Analysis of Employer‑Funded Virtual Mental Health Care in Canada
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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