Valuation of Drug Abuse: A Review of Current Methodologies and Implications for Policy Making

Abstract

This article reviews the use of several valuation methods as they relate to drug abuse and places them within the context of U.S. policy. First, cost-of-illness (COI) studies are reviewed and their limitations discussed. Second, three additional economic methods of valuing drug abuse are reviewed, including cost—effectiveness analysis (CEA), benefit—cost analysis (BCA) and willingness-to-pay (WTP). As the demand for cost-effective and evidence-based practices and policies grows, the importance of economic research into drug abuse treatment is increasing. However, societal perceptions of drug abuse and their effects on current resource allocation must also be considered when designing and implementing new strategies. Findings based on rigorous and innovative methodologies have the potential to positively impact the development and delivery of new cost-effective and beneficial services, thereby providing a more solid foundation for policy makers.

Business Cycles and Admissions to Substance Abuse Treatment

“…It is worthwhile to consider what type of individual is influenced by business cycle contractions into seeking, or not seeking, specialty treatment. As discussed earlier in the manuscript, specialty treatment has been found to reduce substance abuse and mitigate associated societal costs including crime, decreased labor market productivity, and healthcare use (Doran ; McCollister and French ; Murphy and Polsky ; Schori ). While our data will not allow us to fully study this question, we hypothesize that the affected group is heterogeneous.…”

Substance Use Disorder Treatment Centers and Property Values

“…Although SUDs are incredibly harmful, numerous treatment modalities have been shown to be effective in treating these conditions (Collins et al 2010;Doran 2008;French and Drummond 2005;Holder 1998;Murphy and Polsky 2016;Schori 2011). In 2016, 3.8M Americans ages 12 years and older received some form of SUD treatment (Center for Behavioral Health Statistics and Quality 2017).…”

Benefit-cost analysis of SBIRT interventions for substance using patients in emergency departments

“…To mitigate the negative aspects of substance use disorders, many social programs have been put in place and it is estimated that the annual expenditures on SUD treatment in the U.S. is over $20 billion (Mark, Levit, Vandivort-Warren, Buck, & Coffey, 2011). While the overall benefits of addiction treatment are well documented, policy makers are increasingly relying on economic analyses, particularly benefit-cost analyses, because they provide a framework to compare the overall economic impact of different substance use disorder treatment programs (Cartwright, 2000; Doran, 2008; French & Drummond, 2005; Holder, 1998; McCollister & French, 2003; Schori, 2011). …”