Cost-Benefit of Treatment Foster Care Oregon (TFCO) Versus Residential Care in Illinois

Purpose: This pilot study evaluated the cost-benefit of research-based Treatment Foster Care Oregon (TFCO) as an alternative treatment setting to residential care for children in the Illinois child welfare system. Methods: Using secondary analysis of child welfare administrative data, this study observed, for 2 years, 52 children enrolled in TFCO and 67 children who were eligible for TFCO but remained in or entered residential care. Results: Over the 2-year period, the average daily cost of care for children in TFCO was $249, compared to $320 for children in residential care, resulting in cost-savings of $51,058 per child and an overall net benefit of $94,294 per child. Conclusions: The promising cost-benefit evidence of TFCO as implemented in a state child welfare system has implications on social work services and placement decision-making, and system capacity in scaling up short-term therapeutic foster homes for children who might otherwise languish in residential care.