Objective: To estimate the dollar savings in costs attainable from dru
g or other treatments for Alzheimer disease (AD) that stabilize or rev
erse patients' cognitive decline. Methods: Medical and other disease-r
elated utilization data were collected from the caregivers of 64 patie
nts diagnosed as having probable AD. The quantities of utilization wer
e priced at national levels to generate measures of illness costs. Cos
ts per patient were then estimated as regression functions of scores o
n the Mini-Mental State Examination (MMSE), which was used as an index
of patient cognitive function. Potential savings in illness costs wer
e estimated by comparing predicted costs at various baseline and inter
vention-level values of the patient's MMSE score. Results: The potenti
al savings in illness costs attainable from treatment are small for mi
ldly and very severely demented patients with AD. However, for moderat
ely to severely demented home-dwelling patients having, say, an MMSE s
core of 7 at baseline, prevention of a 2-point decline in the score wo
uld save about $3700 annually, and a 2-point increase in an MMSE score
rather than a 2-point decline would save about $7100. Conclusion: Lar
ge savings in the costs of caring for moderately to severely demented
home-dwelling patients with AD may be achievable from disease interven
tions that have minor effects on patients' cognitive status.