Quantifying DFK s Social Return on Investment: The Impact of Prevention

Transcription

1 Quantifying DFK s Social Return on Investment: The Impact of Prevention Helena Rati Daniel Cohen Quinn Ashkenazy Renaud Deronzier April 7,

2 Overview Objectives SROI Analysis Results Recommendations What are the costs to society over the lifetime of a teenager who abuses drugs? 1. What is the total reduction in drug abuse attributable to DFK? 2. What are the societal costs of drug abuse? 3. What is the annual investment in DFK? Social Return Investment 4. What is DFK s SROI? Social Return Investment 1. DFK s Impact 2. Societal Costs 3. Investment 4. SROI 2

3 Overview Objectives SROI Analysis Results Recommendations The costs of drug abuse are measured in different ways across different levels Society Community Family Individual 1. DFK s Impact 2. Societal Costs 3. Investment 4. SROI 3

4 Overview Objectives SROI Analysis Results Recommendations The costs of drug abuse are measured in different ways across different levels Society For the purposes of SROI, DFK s impact is measured from a macro standpoint by considering the financial consequences to society as a whole 1. DFK s Impact 2. Societal Costs 3. Investment 4. SROI 4

5 Overview Objectives SROI Analysis Results Recommendations Drug abuse has both measurable and immeasurable costs to society Measurable Costs Immeasurable Costs Healthcare Costs Law Enforcement Costs Productivity Costs Quality of Life Costs There are significant costs to individuals and families that are difficult to quantify financially 1. DFK s Impact 2. Societal Costs 3. Investment 4. SROI 5

6 Overview Objectives SROI Analysis Results Recommendations The measurable costs of substance abuse can be categorized as direct or indirect Direct Costs Indirect Costs Healthcare Costs Acute & ambulatory care Psychiatric care Inpatient & outpatient services Physician fees Welfare administration Research & prevention Law Enforcement Costs Policing Prosecution Incarceration Productivity Costs Non-contribution to GDP due to premature mortality 1. DFK s Impact 2. Societal Costs 3. Investment 4. SROI 6

7 Overview Objectives SROI Analysis Results Recommendations 1) Health-related costs of drug abuse over the lifetime of one teenager amount to a present value of ~$57,000 DA healthcare costs per drug-addicted person on an annual basis: Total healthcare costs attributable to drugs [2016] # of drug-addicted persons in Canada $2,031,995, ,000 2 $2,800 in Year 1 In present value terms, the costs to the healthcare system over the lifetime* of a drug-addicted teen are ~$57,000 *Adjusting for inflation and increase in healthcare expenditure. 1. DFK s Impact 2. Societal Costs 3. Investment 4. SROI Sources: 1. Rehm et al., 2006; 2. Statistics Canada, 2012 Note: DA = Drug Attributable 7

8 Overview Objectives SROI Analysis Results Recommendations 2) Crime-related costs of drug abuse over the lifetime of one teenager amount to a present value of ~$96,000 DA law enforcement costs per drug-addicted person on an annual basis: Total law enforcement costs attributable to drugs [2016] # of drug-addicted persons in Canada $3,447,170, ,000 2 $5,000 in Year 1 In present value terms, the costs to the law enforcement system over the lifetime* of a drug-addicted teen are ~$96,000 *Adjusting for inflation and increase in law enforcement expenditure. 1. DFK s Impact 2. Societal Costs 3. Investment 4. SROI Sources: 1. Rehm et al., 2006; 2. Statistics Canada, 2012 Note: DA = Drug Attributable 8

9 Overview Objectives SROI Analysis Results Recommendations 3) GDP-related costs of drug abuse over the lifetime of one teenager amount to a present value of ~$299,000 Premature Mortality: Annual Forgone Income (Male) $33,000 1 Annual Forgone Income (Female) $19,000 1 PV of lifetime forgone income at time of death (age 36) $615,000 PV of lifetime forgone income from base-age (age 15) $299,000 In present value terms, the lost contribution to GDP* resulting from drugrelated premature death amounts to ~$299,000 per year *Adjusting for inflation 1. DFK s Impact 2. Societal Costs 3. Investment 4. SROI Sources: 1. Statistics Canada Note: PV = Present Value 9

10 Overview Objectives SROI Analysis Results Recommendations The average cost to society over the lifetime of a drug addicted teenager is ~$450,000 Health-related costs Crime-related costs GDP-related costs ~$57,000 ~$96,000 ~$299,000 ~$450,000 per individual 1. DFK s Impact 2. Societal Costs 3. Investment 4. SROI 10

11 DFK s prevention efforts save society ~$450,000 per teen 11 11

12 Appendix Table of Contents - Appendices Appendix 8: Healthcare model assumptions Appendix 9: Healthcare model Appendix 10: Law enforcement assumptions Appendix 11: Law enforcement model Appendix 12: Delinquent behaviour is associated with drug use Appendix 13: Contribution to GDP assumptions Appendix 14: Contribution to GDP model 12

13 Appendix Appendix 8: Healthcare Assumptions 13

14 Appendix Appendix 9: Healthcare Model In present value terms, the costs to the healthcare system over the lifetime of a drug-addicted teen are ~$57,000 14

15 Appendix Appendix 10: Law Enforcement Assumptions 15

16 Appendix Appendix 11: Law Enforcement Model In present value terms, the costs to the law enforcement system over the lifetime of a drug-addicted teen are ~$96,000 16

17 Appendix Appendix 12: Delinquent behaviour is associated with drug use Prevalence of delinquent behavior in youth who: Do not consume alcohol 9% vs 35% Consume alcohol Do not consume drugs 16% vs 60% Consume drugs Proportion of Inmates Using Drugs Crimes Committed by Drug-Dependent Inmates 31% 48% 14% 8% 18% 21% 60% Non-users Non-dependent users Dependent users Violent Gainful Drug crime Other crime Source: 17

18 Appendix Appendix 13: Contribution to GDP Assumptions 18

19 Appendix Appendix 14: Contribution to GDP Model In present value terms, the lost contribution to GDP resulting from drug-related premature death amounts to ~ $299,000 per year 19

20 Appendix Sources Slide 8 1. Rehm, J., Baliunas, D., Brochu, S., Fischer, B., Gnam, W., Popova, S.,...Taylor, B. (2006). The Costs of Substance Abuse in Canada. Canadian Centre on Substance Abuse. Retrieved from /01/21/224bbc9d30cf03ae14d92deafe650223/the_costs_of_substance_abuse_in_canada_2002_-_annex_d.pdf 2. Statistics Canada. (2012). Rates of selected mental or substance use disorders, lifetime and 12 month, Canada, household population 15 and older. Retrieved from Slide 9 1. Rehm, J., Baliunas, D., Brochu, S., Fischer, B., Gnam, W., Popova, S.,...Taylor, B. (2006). The Costs of Substance Abuse in Canada. Canadian Centre on Substance Abuse. Retrieved from /01/21/224bbc9d30cf03ae14d92deafe650223/the_costs_of_substance_abuse_in_canada_2002_-_annex_d.pdf 2. Statistics Canada. (2012). Rates of selected mental or substance use disorders, lifetime and 12 month, Canada, household population 15 and older. Retrieved from 20