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When Dementia is Mistaken for Psychosis and the Clinical Error That Escalates Care

  • Mar 18
  • 3 min read

Updated: Mar 19

Clifford Cartagena, RN, BSN, is a psychiatric nurse, safety trainer, and founder of Gentleway Systems LLC. Co-founder of Arizona Care Horizon Institute, he is completing his PMHNP degree at Walden University. Author of The Gentle Art of Crisis, he advances trauma-informed, dignified approaches to workplace safety.

Executive Contributor Clifford Cartagena

Every year, thousands of patients are mislabeled. A confused older adult is called “combative.” A hallucinating patient is labeled “psychotic.” A wandering resident is considered “noncompliant.” But what if the behavior is neither defiance nor primary psychiatric illness? What if it is dementia being misunderstood?


Nurse talks to an elderly man by a window. Half blue-red brain image with text: "Dementia vs Psychosis: Preventing Escalation Through Understanding."

The clinical distinction between dementia-related behavioral symptoms and primary psychosis is not academic. It is a safety issue. And when professionals get it wrong, escalation follows.


The high cost of misinterpretation


Dementia affects cognition, memory, perception, and executive functioning. As the disease progresses, individuals may experience:


  • Visual hallucinations

  • Paranoia

  • Agitation

  • Disorganized speech

  • Emotional lability


These symptoms can resemble schizophrenia or acute psychosis. However, the neurological origins, progression patterns, and response to intervention are fundamentally different.


When staff assume “psychiatric aggression” instead of “neurological confusion,” they often respond with:


  • Verbal confrontation

  • Physical restriction

  • Overmedication

  • Law enforcement activation

  • Involuntary holds


Each of these increases trauma risk for both the patient and the staff. Escalation rarely begins with violence. It starts with a misunderstanding.


Why de-escalation fails in dementia cases


Traditional de-escalation models are built around restoring logic and reason. They rely on:


  • Reality orientation

  • Rational discussion

  • Behavioral contracts

  • Directive communication


These approaches can work in primary psychosis once acute symptoms stabilize. They often fail in advanced dementia. Why? Because you cannot reason with a brain that no longer typically processes time, context, or identity.


If a patient with dementia believes they are 25 years old and need to go to work, telling them they are 84 and retired is not grounding, it is threatening. The nervous system responds accordingly.


Neurology vs. psychiatry: A practical distinction


Primary psychosis typically presents with:


  • Organized delusional systems

  • Auditory hallucinations

  • Gradual symptom development

  • Insight fluctuations


Dementia-related behavioral disturbances are more commonly present with:


  • Visual hallucinations

  • Sundowning patterns

  • Rapid environmental sensitivity

  • Cognitive decline over time

  • Executive dysfunction


Understanding the pattern changes the intervention. Instead of correction, you use redirection. Instead of confrontation, you validate emotion. Instead of control, you adjust the environment. The intervention is neurological, not disciplinary.


The escalation chain


Here is what often happens in facilities:


  1. Staff misinterpret behavior.

  2. Staff apply incorrect de-escalation method.

  3. Patient becomes more fearful.

  4. Physical resistance increases.

  5. Emergency measures are used.

  6. Trauma is reinforced.

  7. Documentation labels patient “aggressive.”


The cycle repeats. Breaking this cycle requires training that differentiates behavioral health crisis from neurocognitive disorder response.


The public health implications


The aging population is increasing. Hospitals, assisted living facilities, memory care units, behavioral health centers, and emergency departments are encountering more mixed presentations dementia layered with depression, trauma, or delirium.


Without structured education, escalation becomes the default. With proper training, escalation can be prevented.


What professionals must learn


Practical prevention training must include:


  • Rapid bedside differentiation between dementia and primary psychosis

  • Trauma-informed response models

  • Environmental modification strategies

  • Non-restriction positioning techniques

  • Language shifts that reduce defensive reactions

  • Family communication methods

  • Clear decision trees for when psychiatric transfer is appropriate


When teams understand the neurological root, physical restraint rates decrease. Medication reliance decreases. Staff injury decreases. Patient dignity increases.


March is Brain Awareness Month, a time to correct the narrative


We talk about Alzheimer's awareness. We talk about behavioral health reform. We talk about crisis response models. But we rarely talk about the intersection where misdiagnosis creates preventable escalation.


If we genuinely care about patient safety, we must move beyond generic de-escalation and into diagnosis-informed response. That shift alone can change outcomes.


If your team is encountering escalating behaviors that may be rooted in misinterpretation rather than aggression, structured training on dementia versus psychosis differentiation may significantly reduce risk. A live educational program developed for healthcare professionals is currently available and open to enrollment. Learn more here.


Follow me on Facebook, LinkedIn, and visit my website for more info!

Read more from Clifford Cartagena

Clifford Cartagena, CEO & Founder

Clifford Cartagena, RN, BSN, is a psychiatric and medical-surgical nurse, hospice provider, safety trainer, and founder of Gentleway Systems LLC. He is also the co-founder of the Arizona Care Horizon Institute. He was authorized by the ADHS (Arizona Department of Health Services) to deliver the Memory Care Services Training in Arizona. Cliff is currently completing his Psychiatric Mental Health Nurse Practitioner (PMHNP) degree at Walden University. He is the author of The Gentle Art of Crisis. With more than 20 years of nursing and leadership experience, he developed the Gentleway System, a trauma-informed approach to preventing and managing assaultive behaviors across healthcare and beyond.

This article is published in collaboration with Brainz Magazine’s network of global experts, carefully selected to share real, valuable insights.

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