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Benefits and costs associated with mutual-help community-based recovery homes: The Oxford House model


  • Lo Sasso, Anthony T.
  • Byro, Erik
  • Jason, Leonard A.
  • Ferrari, Joseph R.
  • Olson, Bradley


We used data from a randomized controlled study of Oxford House (OH), a self-run, self-supporting recovery home, to conduct a cost–benefit analysis of the program. Following substance abuse treatment, individuals that were assigned to an OH condition (n=68) were compared to individuals assigned to a usual care condition (n=61). Economic cost measures were derived from length of stay at an Oxford House residence, and derived from self-reported measures of inpatient and outpatient treatment utilization. Economic benefit measures were derived from self-reported information on monthly income, days participating in illegal activities, binary responses of alcohol and drug use, and incarceration. Results suggest that OH compared quite favorably to usual care: the net benefit of an OH stay was estimated to be roughly $29,000 per person on average. Bootstrapped standard errors suggested that the net benefit was statistically significant. Costs were incrementally higher under OH, but the benefits in terms of reduced illegal activity, incarceration and substance use substantially outweighed the costs. The positive net benefit for Oxford House is primarily driven by a large difference in illegal activity between OH and usual care participants. Using sensitivity analyses, under more conservative assumptions we still arrived at a net benefit favorable to OH of $17,830 per person.

Suggested Citation

  • Lo Sasso, Anthony T. & Byro, Erik & Jason, Leonard A. & Ferrari, Joseph R. & Olson, Bradley, 2012. "Benefits and costs associated with mutual-help community-based recovery homes: The Oxford House model," Evaluation and Program Planning, Elsevier, vol. 35(1), pages 47-53.
  • Handle: RePEc:eee:epplan:v:35:y:2012:i:1:p:47-53
    DOI: 10.1016/j.evalprogplan.2011.06.006

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    References listed on IDEAS

    1. French, Michael T. & Salomé, Helena J. & Carney, Molly, 2002. "Using the DATCAP and ASI to estimate the costs and benefits of residential addiction treatment in the State of Washington," Social Science & Medicine, Elsevier, vol. 55(12), pages 2267-2282, December.
    2. repec:aph:ajpbhl:10.2105/ajph.2005.070839_1 is not listed on IDEAS
    3. repec:aph:ajpbhl:1995:85:12:1630-1635_5 is not listed on IDEAS
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    Cited by:

    1. Mihic, Marko M. & Todorovic, Marija Lj. & Obradovic, Vladimir Lj., 2014. "Economic analysis of social services for the elderly in Serbia: Two sides of the same coin," Evaluation and Program Planning, Elsevier, vol. 45(C), pages 9-21.


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