This paper presents a cost-utility analysis of three maintenance treat
ments for recurrent depression: interpersonal therapy (IPT-M), imipram
ine drug therapy (Drug), and a combination of the two. We base our ana
lysis on the results of the University of Pittsburgh's Controlled Clin
ical Trial of Maintenance Therapies for Recurrent Depression. We const
ruct a Markovian state-transition model to incorporate clinical effect
iveness into cost and quality-of-life impacts; we assign empirical val
ues to the parameters of this model; and we then use Monte Carlo analy
sis to compare the relative cost effectiveness of the different mainte
nance treatments. For the patients who met the eligibility standards f
or the study, Drug maintenance treatment is cost-effective in the stro
ngest sense of the term compared to either a placebo group or IPT-M: i
t both improves expected lifetime health (measured in quality-adjusted
life years, or QALYs) and reduces direct medical costs. This is true
even when relatively severe side effects of the drug are considered. C
ompared to the placebo group, IPT-M and the combination of IPT-M and D
rug each improve expected lifetime health, although in neither case ar
e expected direct medical costs reduced. Still, the cost of the result
ing health improvements, under $5000/QALY, are very reasonable. A simi
lar conclusion holds comparing Drug and IPT-M to IPT-M alone. All of t
he above conclusions are quite robust to sensitivity analyses.