Thomas M. Wickizer, PhD¹, Branko Kopjar¹, and Gary F. Franklin, MD, MPH². (1) Department of Health Services, University of Washington, Box 357660, Seattle, WA 98195-7660, 206:616-2983, tomwick@u.washington.edu, (2) Department of Environmental Health, University of Washington, Box 357660, Seattle, WA 98040

To reduce the risk of injury associated with substance abuse, private companies and government agencies have established drug-free workplace (DFW) programs. These programs usually require drug testing, the development of a written policy, education and training for supervisors and employees regarding the risks of substance abuse, and the provision of treatment for persons needing it. The investment required to establish a DFW may be substantial, depending upon the company size, turnover rate, injury rate and other factors. Almost no reliable information exists on the effects of DFW programs or their potential cost savings. We analyzed the cost savings associated with DFW programs as part of a larger evaluation study of a DFW program established in 1996 by the Washington State Department of Labor and Industries for the state workers’ compensation program. Based upon analysis of 261 companies that initially enrolled in the DFW program compared to 20,500 non-DFW comparison companies, we found the program had a selective cost-savings effect. The strongest evidence was for construction companies. For this industry group, the estimated gross amount saved was $232 per FTE worker, which translates into a benefit-cost ratio of 3.31:1. Each participant company was given a 5% discount in their workers’ compensation premiums. Based on this discount and the costs incurred for drug testing and employee assistance program (EAP) services, the average company saved $1.65 for every $1 expended. Manufacturing companies also had net cost savings, although these savings were smaller in magnitude. For companies in other industries, DFW programs may not be justified on economic grounds, given injury risk levels and substance abuse prevalence rates.

Learning Objectives: By the end of the session participants should be able to

• Describe the components of drug-free workplace programs,
• Discuss the effects of drug-free workplace programs on occupational injuries,
• Describe the potential cost savings of implementing a drug-free workplace program

Presenting author's disclosure statement:
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.