Study Finds Significant Financial Benefits of Providing Substance Abuse Treatment

Press Release
Substance Abuse Policy Research Program
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www.saprp.org

Latest Study Addresses Policy Makers' Concerns on Spending Public Dollars on Drug and Alcohol Treatment

Washington, DC -- Every dollar spent on substance abuse treatment generates $7 in monetary benefits for society, according to a new study from researchers at the University of California at Los Angeles (UCLA).

Published in the on-line early edition of the peer-reviewed journal, Health Services Research, the study finds that the average cost of substance abuse treatment is $1,583, resulting in monetary benefits of $11,487 through reduced medical expenses, reduced costs of crime and increased employment earnings.

"Policy makers are generally more inclined to support treatment programs for substance abuse if they pay for themselves through reductions in other types of costs, such as health care, criminal justice expenses, social programs, and unemployment benefits. This study clearly demonstrates the financial benefits of providing treatment for drug and alcohol problems," according to Susan Ettner, lead author and professor of general internal medicine and health services research at UCLA's David Geffen School of Medicine and School of Public Health.

The researcher team used data from 2,567 clients in 43 treatment programs in 13 California counties during 2000 and 2001, through the California Treatment Outcome Project (CalTOP).

The research team estimated cost of treatment for an individual by multiplying the number of days spent in each treatment setting, such as residential or outpatient, by the average daily cost of each mode of treatment, estimated using cost data collected from treatment providers.

Monetary benefits associated with treatment were estimated using administrative records as well as data provided by each client prior to treatment and nine months after treatment began. The study examined costs of medical care, mental health services, criminal activity, earnings, and related costs of government programs such as unemployment and public aid.

The California Department of Drug and Alcohol Programs, the Center for Substance Abuse Treatment and the Robert Wood Johnson Foundation's Substance Abuse Policy Research Program (SAPRP) provided primary support for the study.

"Substance abuse treatment is often needed by those who are indigent and are therefore dependent on services that are publicly financed. Given the stigma associated with substance abuse and the skepticism about the value of rehabilitation, financing for substance abuse treatment often runs into the question of whether or not it is beneficial in human and monetary terms. This study adds to a growing body of research showing the benefits of substance abuse treatment," according to Ettner.

The study's other findings:

• Treatment costs of clients who began with outpatient care totaled $838 compared to $2,791 for those who began in residential care.
  
   
• Reductions were seen in hospital inpatient, emergency room and mental health services costs, but only the $223 reduction in emergency room costs was statistically significant.
  
   
• Reduction in the cost of victimization and other criminal activities averaged $5,676.
  
   
• No significant changes were seen related to unemployment or disability costs. However, welfare payments increased slightly, perhaps due to increased referrals to public aid programs.

The California Department of Alcohol and Drug Programs (ADP) implemented CalTOP to allow regular assessments of drug abuse treatment clients and their outcomes so counties can adjust programs to address changing needs over time.

The Substance Abuse Policy Research Program of the Robert Wood Johnson Foundation is a $54 million program that funds research into policies related to alcohol, tobacco and illegal drugs.

The Robert Wood Johnson Foundation focuses on the pressing health and health care issues facing our country. As the nation's largest philanthropy devoted exclusively to improving the health and health care of all Americans, the Foundation works with a diverse group of organizations and individuals to identify solutions and achieve comprehensive, meaningful and timely change.

For more than 30 years the Foundation has brought experience, commitment, and a rigorous, balanced approach to the problems that affect the health and health care of those it serves. Helping Americans lead healthier lives and get the care they need--the Foundation expects to make a difference in our lifetime. For more information, visit www.rwjf.org.