New Mexico finds MST cost-effective, saves the state $135 million
In December 2014, a report was published showing very positive results for troubled youth receiving Multisystemic Therapy (MST) treatment over a nine-year period in New Mexico. The state decided to take a closer look at the data from its Juvenile Justice Services System (JJS) focusing on whether using MST for delinquent youths at risk of out-of-home placements was paying off.
The study analyzed information gathered on 4,016 delinquent young people receiving MST from July 2005 to June 30, 2014, covering admission to six and 12 months after discharge. These were youths with very high rates of severity at admission to MST and showed great improvement in all areas examined, including improved functioning, decreased mental health and substance-abuse problems, and cost savings to the state through reductions in using Medicaid-funded behavioral health services.
How the numbers crunched out
The results of the study left little doubt that MST not only helped the youths it served but the taxpayers’ wallets, too. Taxpayers saved more than $54 million and crime victims almost $105 million from reductions in court proceedings for 2,052 youths.
The outcome evaluation showed a 73-percent reduction in the monthly rate of criminal petitions (with a 38-percent drop in felony petitions) during the 24 months after MST treatment compared to the 12 months before treatment. These figures represent a benefit of $65,754 per youth.
The rate of return (i.e., benefit-cost ratio) was 6.62. For every dollar spent on MST treatment, $6.62 was returned in reduced crime-related expenses.
Monthly expenses to taxpayers were much higher before MST treatment ($2,965,190) than during ($911,480) or after ($822,580). Net benefits to taxpayers were more than $30 million.
Tangible losses for victims (property damage, health care, victim services, police/fire, and lost productivity) dropped by more than $15 million. Savings from intangible losses (pain and suffering) were estimated in excess of $41.5 million.
This all worked out to economic benefits of almost $135 million as a result of reduced criminal petitions up to 22.2 months after youth completed MST. Not to be lost in all these statistics is how MST succeeds in keeping kids at home, in school, and out of trouble, putting them on road to a productive, positive life.
David Bernstein is the Director of The Center for Effective Interventions at the University of Denver Graduate School of Social Work.
Download the complete case study on New Mexico's success.
