The Costs of Needle Exchange
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Two Main Costs to Consider
Instituting needle exchanges (NEPs) in New Jersey
would involve two primary costs: monetary and societal.
While the cost to taxpayers is difficult to project, there is sufficient
evidence that the cost to communities would be
detrimental. Cost estimates by the media and those who
support starting three pilot needle exchanges in our state are
speculative at best and most likely represent expenses for
the first year of operation only. As recently as May 15, 2006,
the Office of Legislative Services, Human Services Section,
stated that “No fiscal estimates are available on the proposed
needle exchange bills.”1
Throughout the country and the world, the cost of needle
exchange programs varies greatly. One reason for this is
that the number of NEP users typically increases over time,
and so do the monetary costs. For example, Ontario’s program
started in 1999, and in 2006 the number of needles
handed out grew almost 75 percent. Close to 6,000 needles
were given out in the first quarter of 2006, compared to
nearly 3,500 in the first three months of the previous year.2
In London, five million needles are provided to drug
addicts each year, yet harm reduction advocates claim that
this amount is 80 percent short of the total needed because
their estimate of the number of injection drug users (IDUs)
was inaccurate.3
These scenarios suggest that the number of users typically
increases where NEPs are established. It follows that
associated costs will increase, as more needles, more cleanup,
more NEP workers, and more police to monitor the area
are required. (See NJFPC publication The Case for Opposing
Needle Exchange.)
Furthermore, once the decision is made to implement“harm reduction” drug strategies, costs could grow as a result
of expanding programs to include drugs for users, rather
than treatment or rehabilitation programs.
Toronto has had needle exchange programs for a number
of years, but now, rather than spending needed money for
rehabilitation programs, they’ve approved a new “harm
reduction scheme” which allows the distribution of so-called“safer crack kits.” Councilwoman Sylvia Watson tried to get
her colleagues to wait for a cost estimate before approving
the measure, but they passed it anyway. The Board of
Health had already spent $300,000 to create the plan and
supporters were asking for $250,000 to hire four staff to
implement it.4
Vancouver, one of the first cities to institute NEPs,
became the first to start a program in 2005 that prescribes
free heroin for those who “cannot stop” taking drugs, in an
attempt to “stabilize their lives” and reduce deaths by overdose— not necessarily to end their addiction.5
Another vague cost discussed by NEP supporters is “cost
per infection prevented,” which assumes that in a year’s
time, a certain number of people will be saved from contracting
HIV, thanks to the services of an NEP. In a 1999
presentation to the New Jersey Governor’s Council on
HIV/AIDS, Don Dejarlis, Ph.D. (professor of epidemiology
and population health, Beth Israel Medical Center, New York City), reported on cost-per-infection-prevented figures, based
on a non-verifiable estimate of about 3 percent of users supposedly
prevented from contracting HIV.
Taking Dejarlis’ projected cost of three NEP pilot programs— a total of $750,000 — and dividing by 84.44 people
(3 percent of the current number of users as of 2005 in the
cities that will be served by the pilot programs: Atlantic City,
Camden and probably Newark) amounts to $8,021 as a “cost
per infection prevented.”
In contrast, a 2005 study by the RAND Corporation posted
on the National Institutes of Health (NIH) website, shows
that the average cost per infection (supposedly) prevented
by NEPs is more than 60 percent higher, about $13,000 per
person in high prevalence areas.6 When NEP supporters talk
about how much a needle exchange program will cost, their
numbers are highly speculative at best. (See NJFPC publication
Needle Exchange Programs: Multiple Problems, Unproven
Results, p. 5.)
True Seroconversion Statistics Prove Projections
of NEP Cost
& Effectiveness Are Flawed
Needle exchange supporters typically distort the cost of
needle exchanges versus HIV treatment. A paper posted on
the Drug Policy Alliance of New Jersey website attempts to
make the case that, on average, about two IDUs per year
would be saved from contracting HIV/AIDS as a direct
result of an NEP,7 yet there are no valid statistical seroconversion
studies8 to support this statement.
In fact, of the seven statistically valid seroconversion
studies published from 1994 through mid-2003, none show a
decrease in the spread of Hepatitis B (HBV) or Hepatitis C
(HCV), and two of them show an increase.9
The parameters of a statistically valid seroconversion
study are: Using a sample of injection drug users who agree
to use a specified needle exchange, testing their blood to
determine negative HIV status, then after set periods of
time, testing their blood again at predetermined intervals to
determine whether or not they have contracted HIV. This
population must then be compared to the periodic serostatus
of IDUs not using the needle exchange.
Some studies used by pro-needle supporters purportedly
provide seroconversion data by comparing new cases of
HIV/AIDS or drops in new cases from one community to
another. This method of comparison, however, is not valid
because there is no way to rule out other possible contributing
factors.
For example, between 1988 and 1993 in the U.S., HIV/AIDS
cases decreased in IDUs apart from specific interventions.10 Right now, amidst the outcry from NEP supporters as to the
threat of HIV/AIDS in New Jersey, “the number of people living
with HIV/AIDS who were exposed by injection drug use
has generally shown a downward trend between 2001-2005,”11 without any additional intervention, such as an NEP.
Unreliable Statistical Models Used to
Support NEPs
Dr. Fred Payne, former medical epidemiologist with the
Centers for Disease Control and Prevention (CDC) and retired senior research epidemiologist of allergy and infectious
diseases at NIH, is an expert on the statistical and epidemiological
parameters of studies regarding HIV/AIDS.
In a personal interview, Payne was asked about some of
the studies commonly touted by NEP supporters, including:
(1) a 1997 worldwide study by Hurley, Jolly and Kaldor,
which claims to show an average annual seroprevalence 11 percent lower in cities with NEPs, and (2) “seroconversion” studies presented by D. Paone in 1997 at the New York
Statewide HIV Conference, which he claims show NEPs are
effective.12
“The worldwide study combines published with unpublished
sources in 81 different cities,” Dr. Payne explained,“and therefore the results cannot show a direct association
that rules out other factors.” Concerning the studies presented
by Paone as “seroconversion,” Payne stated “These cannot
be published, true ‘seroconversion’ studies testing NEP
participants over a set period of time, and therefore proper
statistical methods cannot be used to show a direct cause and
effect connection between HIV data and the NEP program.”
13
Human and Societal Costs of NEPs
Lastly, NEP supporters seem to ignore two other major
cost factors. First, by instituting NEPs and enabling questionably “safer” drug use, the government is doing nothing to
stop the transmission of HIV/AIDS through sexual contact
and the continued needle sharing that inevitably happens,
especially when users may not be near the NEP. Those who
continue to contract disease through these methods will
continue to spread HIV/AIDS and the health costs will continue
to mount.
Furthermore, peer-reviewed scientific and anecdotal evidence
appear to support the fact that sustained, continued
drug use, such as that facilitated by NEPs, likely weakens
drug abusers’ defenses against infection, sustains their longterm
risk for disease and minimizes the benefits of available
treatments for HIV disease,14 adding to health costs.
Second, NEPs are likely to increase the costs of drug
abuse for society and law enforcement. Communities suffer
the results of more open drug dealing and taxpayers shoulder
the burden of funding more police to monitor and deal
with the influx of crime to the area. When the government removes a barrier to injection drug use by supplying clean
needles in a protected area, predictably, drug trafficking in
and around the vicinity of the NEP will increase, along with
more crime, prostitution, guns, etc. (See NJFPC publication
The Case for Opposing Needle Exchange.)
Are There Better Ways to Slow the Spread of
HIV/AIDS?
Even NIH Director Elias A. Zerhouni, M.D., has qualified
the usefulness of NEPs, saying “it [can be] an effective component
of a comprehensive community-based HIV prevention
effort,” 15 meaning that when not accompanied by treatment
and education programs, a needle exchange program’s effect
upon slowing the spread of HIV is questionable.
The bottom line is that there are more positive and relatively
cost-effective ways to slow the spread of HIV/AIDS,
without adding to societal degradation and condoning and
enabling drug addicts and dealers.
According to the latest RAND study, there are more economical
methods in the fight against HIV/AIDS. The summary
chart “Cost-Effective Allocation of Government Funds
for Preventing HIV” shows that the annual costs of two existing
intervention programs, “Notifying Sexual Partners” and“Educational Videos at STD Clinics,” would be about $16 million,
versus about $30 million to implement a needle
exchange in a high prevalence area. Additionally, these
interventions would reach more than three times the number
of people with lifesaving HIV prevention information.16
However, one of the three researchers on this RAND
study, Deborah Cohen, MD, MDH, verified that the RAND
data is gathered from a variety of self-report studies, not
seroconversion studies,17 which compromises its accuracy.
But if one is willing to argue the matter employing the compromised
study parameters that pro-needle supporters are
using, the RAND study shows there are arguably better
funding options to slow the spread of HIV/AIDS.
Let’s hope the public, the media and our legislators will
once and for all learn how to clearly differentiate a valid
study from an invalid one and challenge health experts on
this basis. Then legislators can decide upon valid options
that consider the well-being of all our citizens and will slow
the spread of HIV/AIDS.
1 Office of Legislative Services, telephone inquiry by writer via the office of New
Jersey Assemblyman Joseph Pennachio, May 15, 2006.
2 Fiona Isaacson, “Needle Exchanges Jump Among Local Drug Users,” Guelph
Mercury (Ontario, Canada), May 6, 2006, p. A-3.
3 “One in 50 Injects Drug, Research Finds,” UK Press Association, May 12, 2004
(http://societ.guardian.co.uk/drugsandalcohol
/story/0,8150,1281633,00.html).
4 Sue-Ann Levy, “License to Kill? Even Some Addicts Say ‘Safe Injection Sites are
Harmful,’” Toronto Sun, Dec. 18, 2005, Comment section, p. 6.
5 Am Johal, “North America’s First Heroin Prescription Program Introduced in
Canada,” Worldpress.org, March 26, 2005.
6 D.A. Cohen, S-Y Wu, and T.A. Farley, “Cost-Effective Allocation of Government
Funds to Prevent HIV Infection,” Health Affairs, Vol. 24, No. 4, July/August 2005,
pp. 915-926.
7 P. Lurie, E. Drucker, “An opportunity lost: HIV infections associated with lack of a
national needle-exchange programme in the USA,” Lancet, 1997; 349:604-608, as
cited in Drug Policy Alliance of New Jersey, “Syringe Availability” (http://www.drugpolicy.org/library/research/syringe.cfm).
8 Seroconversion studies are designed to determine the
number of NEP participants whose blood converted from
HIV negative to HIV positive within a set time period.
9 Fred Payne, MD, MPH, FACPM, “An Evidence-Based Review of Needle Exchange
Programs,” Children’s AIDS Fund website, Feb. 28, 2005, modified May 10, 2006,
p.1 (http://www.childrensaidsfund.org/showarticle.asp?id=246).
10 P.S. Rosenberg, R.J. Biggar, JAMA, 1998; 279:1894-1899.
11 New Jersey HIV/AIDS Reporting System, Report as of 12/31/2005, Figure 3, “Estimated Persons Living with HIV/AIDS in NJ by Modified Exposure Category
2001-2005.”
12 Drug Policy Alliance of New Jersey, “Syringe Availability”
(http://www.drugpolicy.org/library/research/syringe.cfm).
13Fred Payne, MD, MPH, FACPM, telephone conversation with writer, May 10,
2006.
14 Congressional Subcommittee Questions the Scientific Validity of Harm
Reduction, letter from Hon. Mark Souder, Chairman, Subcommittee on Criminal
Justice, Drug Policy and Human Resources, April 27, 2004.
15 Elias A. Zerhouni, M.D., Director of NIH, Bethesda, Maryland, letter to the Hon.
Mark Souder, Sept. 2, 2004.
16 D.A. Cohen, S-Y Wu, and T.A. Farley, “Cost-Effective Allocation of Government
Funds to Prevent HIV Infection.”
17 Deborah Cohen, MD, MDH, RAND Corporation,
telephone conversation with writer, March 16, 2006.