BILL NUMBER: S7377B
SPONSOR: BROUK
 
TITLE OF BILL:
An act to amend the mental hygiene law, in relation to the establishment
of mental health clubhouses
 
PURPOSE:
The purpose of this bill is to expand access to accredited mental health
clubhouses.
 
SUMMARY OF PROVISIONS:
-Creates a definition for mental health clubhouse.
-Requires a clubhouse to be within reasonable proximity to public trans-
portation, if participable;
-Allows an accredited clubhouse to establish a virtual clubhouse in
rural areas or other parts of the state without access to a physical
clubhouse;
-Require OMH within one year after this act takes effect, and with tech-
nical advisement and consultation from established clubhouses, to devel-
op an implementation plan to assist with the clubhouse accreditation
process or establish a new clubhouse.
-Creates operational standards and core services that each clubhouse
would need to adhere to.
-Requires OMH to promulgate regulations that would be researched based
and utilize information from sources with expertise in the operation and
accreditation of clubhouses.
 
JUSTIFICATION:
New York is facing an escalating mental health crisis, with a growing
population of individuals experiencing persistent mental health chal-
lenges. Many individuals with serious mental illness struggle to access
the necessary resources to secure stable employment, housing, and long-
term care. Current public health systems often fall short in offering
comprehensive, community-based rehabilitation, leading to increased
rates of hospitalization, homelessness, and incarceration. Mental
health clubhouses provide an evidence-based, peer-supported model that
fosters personal growth, social reintegration, and economic stability.
Research indicates that these programs reduce hospitalization rates,
improve employment outcomes, and generate substantial government
savings. A recent study reported a 21% reduction in Medicaid costs among
individuals engaged in clubhouse programs compared to similar popu-
lations receiving traditional care.
Economic modeling suggests that clubhouses generate approximately
$11,000 in government savings per participant annually, reducing the
financial burden on state-funded mental health services. Additionally,
randomized controlled trials have demonstrated that clubhouse membership
improves quality of life, reduces psychiatric symptoms, enhances self-
esteem, and decreases internalized stigma. Clubhouse participation is
also associated with lower rates of severe psychiatric episodes and
emergency room utilization, significantly decreasing overall healthcare
expenditures. Examples of successful clubhouse models, such as those
operated by Fountain House, show that integrating social and vocational
support with structured programming leads to sustained mental health
improvements. While Fountain House serves as a leading example, similar
models can be expanded statewide to ensure access to critical services
in underserved communities. By establishing a network of accredited
clubhouses, New York will provide individuals with mental illness the
support they need to live independently, reintegrate into the workforce,
and reduce reliance on crisis-driven interventions. Investing in mental
health clubhouses is a cost-effective strategy that str engthens commu-
nity-based care, reduces public expenditures on emergency mental health
services, and improves the overall well-being of New York's most vulner-
able populations.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICTIONS:
TBD
 
EFFECTIVE DATE:
This act shall take effect 90 days after it shall become law.