Objective: State governments are exploring the potential of various fo
rms of case management to control the costs of substance abuse treatme
nt programs, This report describes an experimental program in one Iowa
county in which clients are assessed and referred elsewhere if treatm
ent is needed. Outcomes of clients in that county are compared with th
ose of clients served elsewhere in the state. Methods: All claims subm
itted by provider agencies to the Iowa Department of Public Health for
substance abuse treatment of eligible clients in 1994 were analyzed t
o test the effect of the experimental intake-and-referral program on c
lients' utilization of outpatient treatment, rate of treatment complet
ion, and rate of abstention at discharge from treatment, Results: In t
he county with the experimental program, 27 percent of clients recomme
nded for treatment actually attended, compared with 48 percent in othe
r counties. Clients who used the experimental program were also less l
ikely to complete treatment. These differences persisted after adjusti
ng for baseline differences in client characteristics, Conclusions: Lo
wer utilization arising from failure to attend recommended treatment m
ay reduce treatment costs but is not the intended outcome of the intak
e-and-referral program, Failure to complete treatment also is an adver
se outcome. Outcomes of various types of case management programs shou
ld be carefully evaluated before statewide implementation is considere
d.