This fact sheet presents a synthesis of information on cost effectiveness and cost benefit studies and whether some substance abuse treatment is better than “no” treatment. Cost effectiveness and cost benefit studies can play an important role in helping treatment providers evaluate existing and alternative substance abuse treatment approaches and in assessing new treatment methods. Evaluating the outcomes and costs associated with treatment is important in determining how to more efficiently allocate scarce funding resources. Several cost benefit studies have demonstrated that the benefits of substance abuse treatment, including reductions in criminal behavior and health care costs, are greater than the costs of substance abuse treatment. Some studies have specifically analyzed the economic benefits of substance abuse treatment on health care costs and utilization. These studies have found that health care costs and utilization rise dramatically prior to initiation of substance abuse treatment and fall dramatically following treatment.  Findings from these studies provide growing evidence that substance abuse treatment is cost effective, and the economic benefits outweigh the costs of treatment.

Full fact sheet: NEDS Fact Sheet – The Economic Benefits of Substance Abuse Treatment Outweigh the Cost (PDF | 178.81 KB)  

US Department of Health and Human Services. Substance Abuse and Mental Health Services. (2002). The economic benefits of substance abuse treatment outweigh the costs.