Objective. To assess the costs and benefits of various approaches to e
arly detection of developmental disabilities. Design. Cost-benefit ana
lyses based on data from previously published studies of developmental
screening tests. Setting. General pediatric practices and day care ce
nters. Patients and Other Participants. A total of 247 parents and the
ir 0- to 6-year-old children-103 from day care centers and 144 from pe
diatric practices. Main Outcome Measures. Licensed psychological exami
ners administered a screening test of parents' concerns about children
's development and one or two direct screening tests: the Denver-II an
d/or the Battelle Developmental Inventory Screening Test. For the day
care sample, examiners also administered to each child measures of int
elligence, adaptive behavior, and language. In the pediatric sample, c
hildren were administered additional assessments. At the same time, di
agnostic measures were administered to a randomly selected subsample t
o make determinations about developmental status. Each screening metho
d was evaluated for its short-term costs (administration, interpretati
on, diagnosis, and treatment) and long-term benefits (impact of early
intervention on adult functioning as inferred from longitudinal studie
s by other researchers). Results. When the long-term costs and benefit
s were considered, none of the approaches emerged as markedly superior
to another. When viewing the short-term costs, the various screening
approaches differed markedly. The use of parents' concerns was by far
the least costly for physicians to administer and interpret, Conclusio
n. Physicians tan incur tremendous expenses when attempting to detect
children with developmental problems. Although the benefits of early d
efection and intervention are substantial, physicians are not well-com
pensated for providing a critical service to society. Health policymak
ers and third-party payers must reconsider their minimal investment in
early detection by health care providers. Nevertheless, our findings
have encouraging implications for practice, because the use of parents
' concerns as a screening technique offers substantial savings over an
d above other methods.