Costs and Benefits of Alternative Drug Testing Programs.

Abstract

Abstract : A computerized model for determining costs and benefits of alternative drug testing programs was developed, which compared drug use in the Navy with a demographically equivalent group of civilians. The benefits of deterring and detecting drug users were compared with the costs of drug testing to determine net benefits. Benefits of testing were based on the estimated decrease in the number of drug users and the corresponding increase in employee productivity or value. The costs of testing included laboratory testing costs, employee time required to participate in testing, and were computed with and without the costs of replacing detected personnel. The testing rate, which maximizes the net benefits of testing, was greatly affecte%d by the prevalence of drug use in the civilian sector and the decrease in productivity resulting from drug use. Laboratory testing costs also significantly affected the magnitude of optimal test rates. The rate of drug testing strongly influenced the benefits as well as the costs of testing and the effectiveness of the testing program. Estimates derived from the model indicated that present levels of Navy drug testing were cost beneficial. Annual net benefits were estimated at approximately $200 million exclusive of personnel replacement costs.