Measuring the return on program costs: evaluation of a multi employer alcoholism treatment program

The estimates derived from the model indicate that the shared outpatient treatment approach exemplified by EHP is a cost effective method of treatment for problem drinking workers. It should be noted, however, that the model presented here probably understates the benfits of treatment, since improved work attendance is only one area of potential cost savings that can be realized through alcoholism rehabilitation programs. Other possible benefits, although not as easy to measure, might include reduced labor turnover costs, fewer on the job accidents, improved workgroup morale, lower medical care costs, and a reduction in the number of grievance hearings and labor arbitrations. Nevertheless, application of the model outlined here is recommended to decision makers and program evaluators desiring a readily quantifiable technique for producing a conservative estimate of the cost savings realized by an industrial alcoholism program.