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6th World Congress: Explorations in Health

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December 13, 2007

Cost Function Analysis of the Substance Abuse Treatment Industry: Information Needs, Methods, and Next Steps

Location: Bethesda, Maryland, USA
Dates: 13-14 December 2007
Venue: Hyatt Regency Bethesda

The purpose of this meeting is to bring together a small number of scientists and other interested parties to stimulate scholarly, policy-relevant research on substance abuse treatment delivery costs (DCs) from an industry perspective. Given NIH’s mandate to reduce the rate at which health care costs increase there is an emphasis on finding ways to increase efficiency and effectiveness. Given the wide range of estimates in the literature of cost-per-case for the same treatment modalities, it is possible that there are efficiency gains to be realized in the production of substance abuse treatment. One way to analyze these issues is cost function analysis, a tool that has been used widely in the study of other health care industries but rarely to analyze substance abuse treatment. Little is actually known about the cost structure of the substance abuse treatment industry, for example whether small facilities have average costs lower than larger facilities. We do not fully understand the effects on costs due to variations in client mix, the implementation of evidence-based practices, and alternative organizational structures and business practices. Such information could inform policies and practices aimed at improving quality of care, broadening access, and lowering treatment costs.

More information on the meeting, including the preliminary agenda and instructions for registration, is available at http://www.sei2003.com/NIDA.

permalink December 2007: Health Economics

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