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Published Online:https://doi.org/10.1176/ps.49.6.829

The cost-effectiveness of using the atypical antipsychotic medication clozapine for severe psychosis was examined in a rural public-sector community mental health setting in Virginia. Based on a sample of 20 patients, use of clozapine resulted in estimated cost savings of between $3,000 and $9,000 per patient per year, including the costs of dropouts from treatment. Savings were mainly due to a decline in hospitalization from 47.7±59.8 days per patient in the year before clozapine treatment to 4.6±11.3 days in the year after. Although this study had methodological limitations, the results suggest that clozapine may be cost-effective in this setting.