Psychological problems can increase the likelihood that people will make poor behavioral choices which can contribute to medical problems. I suggest you think about those individuals who will suffer due to the lack of the community resources they need to remain in their community of choice.  I also advise you to take a closer look as to why the most severe cost savings efforts so often target the mentally ill population. The changes proposed will hinder more than just the private sectors staff and owners, it will also affect the client ultimately in the end.