The finding of at least a 7-to-1 return on public investment
in substance abuse treatment could fuel support for such programs
among the public and policymakers in an increasingly tight
financial environment.
Substance abuse treatment advocates in California have a new
tool to gather support for increased funding, with the release
of a recent study that found every dollar spent on substance
abuse treatment generates more than $7 in monetary benefits
for society.
The study, published in the November Health Services Research,
found that the average substance abuse treatment cost in
California is $1,583 per patient and is associated with a
societal benefit of $11,487 in return, which is more than a
7-to-1 ratio of benefit to costs. The ratio rose to 9-to-1
when the researchers inflated arrest data to approximate
actual crimes committed. The ratio is based on weighted
average treatment costs and benefit measures that
demonstrated significant change. Weighted average is each program's
cost divided by client days.
All of society is already paying huge costs imposed by hard-core
substance abusers, said Susan Ettner, Ph.D., lead author and
a professor of general internal medicine and health services
research at the David Geffen School of Medicine and School of
Public Health at the University of California at Los Angeles.
Ettner said investments in substance abuse treatment make good
business sense, without even considering the associated prevention
of human suffering and victimization.
The societal benefit was divided between various factors, including
65 percent attributed to cuts in crime, 29 percent to increased
income, and six percent due to reduced medical and behavioral
health care costs.
The treatment costs were estimated based on the length and average
daily cost of each type of substance abuse treatment.
The study was based on data from the California Treatment Outcome
Project (CalTOP), which collected outcome data on persons admitted
to 43 substance abuse treatment providers in 13 California
counties, including three methadone maintenance programs, 19
drug-free outpatient programs, and nine residential programs.
The study had a response rate of 72 percent. The patient
findings were based on 2,567 patients entering substance
abuse treatment between January 2000 and May 2001 who also
completed a nine-month follow-up survey.
Cost reductions occurred in hospital inpatient use, emergency
room visits, and mental health services. "Victimization costs"
dropped by $3,019, and other costs associated with criminal
activities were reduced by $2,657. Incarceration costs dropped
by $1,788, and personal earnings increased by $3,352. The monetary
benefit findings were based on the survey and administrative
data, which included medical care, mental health services,
criminal activity, earnings, and government payments. The
monetary benefits were based on a comparison of the costs
each patient incurred before treatment with costs after
treatment, so each client served as their own "control."
The California Department of Drug and Alcohol Programs, the
Center for Substance Abuses Treatment, and the Robert Wood Johnson
Foundation provided funding for the study.