Economic cost of FAS/FAE

Along with the medical and social costs of Fetal Alcohol Syndrome (FAS) and Fetal Alcohol Effects (FAE), there is a tremendous economic cost associated with the resulting loss of human potential. Medical and therapeutic costs include the costs of interventions (special education, social workers), and the costs of care (home care, residential care, respite care). The economic costs of FAS/FAE include lost earnings, lost productivity, as well as the costs of the potential consequences of FAS, such as the costs of crime and incarceration.

One Canadian study has estimated the lifetime cost of FAS to be $1.5 million per person. This amount includes only direct medical, educational and social service costs; it does not include the cost of potential FAS consequences such as loss of productivity, crime and incarceration.

The estimated annual impact on each province is shown in Figure 1 (using an estimated life expectancy of 60 for individuals with FAS).

Each year in the four Atlantic provinces, the combined direct costs associated with FAS is almost $57 million, using the lowest estimate for the incidence of FAS (1 per 1,000).

Source: 2001 Census of Canada (population data)

Figure 3: Estimated Annual Costs (millions of dollars), Atlantic Provinces, 2001

These costs demonstrate the potential value of prevention and intervention activities. A prevention strategy that costs $1.5 million and prevents one individual from being born with FAS can thus be seen as being cost-effective. An efficient prevention and intervention strategy could achieve huge long-term savings in medical, social service, policing and corrections expenditures by preventing many children from being born alcohol-affected.

Benefits can also be achieved with very little additional program expenditures. A correct diagnosis of FAS and an intervention plan that is appropriate can be very cost-effective. To use a school-based example, a child may be incorrectly diagnosed with Oppositional Defiant Disorder or Attention Deficit Hyperactive Disorder. If the child has FAS, a correct diagnosis can result in an intervention plan that is far more likely to succeed. The potential benefits of increasing the effectiveness of current interventions are very large, and depend on FAS education for those in the medical, justice, social services and education fields, who work with alcohol-affected people.

Properly designed and implemented FAS/FAE prevention and intervention services save money. Effective prevention activities reduce the number of people who need health and social services, and educational interventions. Prevention further reduces the costs of the consequences of FAS (such as crime). When FAS/FAE is diagnosed, interventions can be designed for an alcohol-affected person and thus make existing intervention services more effective.

Incarceration and other occurrences associated with the criminal justice system are known to be consequences of FAS/FAE. While we do not know what percentage of inmates have FAS/FAE, we do know that a very high percentage of FAS/FAE-affected people have been in trouble with the law or have been incarcerated. In an American study of 253 people with FAS or FAE, 60% had been in trouble with the law (which was defined as ever being charged, convicted, or in trouble with the authorities for any of a list of criminal behaviours), and 42% of adults had been incarcerated for a crime. Given the costs of incarceration (estimated at between $40,000 to $100,000, depending on the type of institution, in 1998), intervention strategies for people with FAS or FAE may be capable of reducing large expenditures in the justice system, and reducing the social and financial costs of crime.

 

[Previous] [Table of Contents] [Next]