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Is Mental Illness Over-Diagnosed or Better Recognised? An Institutional and Management Perspective

Authors

Hiba Ahmad

Rubric:Management
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Annotation

This essay will examine the cause of the considerable rise in mental illness, whether it be due to over-diagnosis or recognition of previously neglected conditions. By utilising diagnostic trends and research, it argues that both processes can be true. The identification of genuine disorders has increased due to the increase in public awareness and reduced stigma around mental illness. However, the rise of diagnoses can stem from pharmaceutical business’ financial incentives, and can encourage the medicalisation of normal experiences of stress and emotional difficulty. The essay will evaluate the economic and ethical implications of the increased diagnoses and concludes that the main issue is not the number of diagnoses, but the conditions under which they are applied. Ultimately, this essay insinuates that mental illness is both over-diagnosed and better recognised and requires practical steps from organisations and policymakers to control incentives and strive for genuine patient benefit rather than ticking a financial box.

Keywords

mental illness
over-diagnosis
mental health recognition
DSM
pharmaceutical industry
organisational behaviour
workplace wellbeing

Authors

Hiba Ahmad

References:

Roger Horberry. (2025). 6 mental health campaigns that are making a difference in 2025. https://www.gwi.com/blog/mental-healthhttps://www.gwi.com/blog/mental-health

The University of Greater Manchester. (2022). Mental Illness Recognition: What you Need to Know. https://greatermanchester.ac.uk/blogs/mental-illness-recognition-what-you-need-to-know

 World Health Organisation (WHO). (2025). Over a billion people living with mental health conditions – services require urgent scale-up. https://www.who.int/news/item/02-09-2025-over-a-billion-people-living-with-mental-health-conditions-services-require-urgent-scale-up

BBC News. (June 2026). Number of children getting special educational needs support hits another record high. https://www.bbc.com/news/articles/cj4g18gy14no

National Library of Medicine. (2022). Changes in mental illness stigma over 30 years – Improvement, persistence, or deterioration?. https://pmc.ncbi.nlm.nih.gov/articles/PMC9724218/

National Library of Medicine. (2019). Expanding boundries in psychiatry: uncertainty in the context of diagnosis-seeking and negotiation. https://pmc.ncbi.nlm.nih.gov/articles/PMC7496635/

National Health Care Anti-Fraud Association (NHCAA). (2025). Upcoding, a common medical fraud exposed. https://www.nhcaa.org/events/upcoding-a-common-medical-fraud-exposed/

National Library of Medicine. (2022) Quantifying the global burden of emntal disorders and their economic value. https://pmc.ncbi.nlm.nih.gov/articles/PMC9526145/

World Health Organisation (WHO). (2024). Mental health at work. https://www.who.int/news-room/fact-sheets/detail/mental-health-at-work

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