Out‐of‐area placements (OAPs) are heavily relied upon by the NHS to meet growing demand but they are expensive, disruptive for patients, and may reduce quality of care and outcomes for patients. Here, the authors compared 50 patients who used acute OAPs with 50 patients admitted to an acute bed locally as regards length of stay, readmission rates, contact with services and levels of self‐harm in the following 12 months. The results were substantially worse in key respects for patients who go to OAPs, raising further questions about their quality and the economic impact to the NHS.