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POPSThe Costs of Trying to Save without Thinking Higher medical and hospitalization costs, lost wages, homelessness and even incarceration of mentally ill patients account for the potential increase in cost, Fleeter concluded. About 45,000 people on Medicaid could be directly affected, the study said. Other studies concluded that three of four schizophrenics suffer a relapse when switching drugs, often resulting in hospitalization, homelessness or violence and incarceration.