This section explains what each type of analysis involves and why it is important. A thorough description of the type and amount of all resources used to produce substance abuse treatment services . Cost analyses are critically important for deciding how to allocate funds within a program and for understanding the relationships between costs and outcomes. Most accounting services provide cost analyses in the form of a monthly or quarterly report. Costs typically are provided at several levels, from the total cost of the program for the entire period to the cost of each part of the program each day.
Costs generally vary over time.
Costs also can be tallied for each patient and for each month for each patient. This is often done for billing or reimbursement. Cost per patient per month can vary over time and depends on a host of factors from type of treatment to program size. The relationship between program costs and program effectiveness, that is, patient outcome. Costs are measured as dollars spent, whereas effectiveness or outcome is measured as changes in patients' behaviors, thoughts, feelings, or biology.