The shift from providing extensive inpatient psychiatric hospitalization to the provision of mental health services in the community has led to significant declines in the number of available psychiatric beds, as well as a focus on quality care and efficient hospital services. As a result, clients who have mental health challenges and who require hospitalization may be discharged too early, experience negative outcomes from poor discharge planning, or have dysfunctional follow-up after their discharge from the hospital. The month after discharge is the most vulnerable time for clients, where high risks for suicide and hospital readmission exist. Preventing gaps during the transition from the hospital to the community can address both the provision of care for the client and the costs incurred for the healthcare system. In this chapter, the authors explore the outcome of cost when implementing the transitional discharge model across nine hospital sites in the Province of Ontario. Expenditures were compared between implementing the transitional discharge model to usual care based on days spent in the hospital. Millions of dollars in cost-savings were found from the model contributing to shorter lengths of stay in the hospital, demonstrating a significant return on investment based on this one factor alone. Insights for practice and policy are discussed.