Abstract
This study estimates the cost of early intervention services in New Jersey and investigates sources of variations in cost. Data were obtained statewide from a cost survey and a daily activity log that service providers completed. Variables affecting cost were the types of staff providing services, time allocations of providers, services setting and type, wage rates, and staff-child ratio. Wide variation in cost and seemingly high absenteeism leading to less than full employment of personnel suggest opportunities for increased efficiency. A fee-for-service system is one alternative to the present system of grant awards that might increase incentives for efficiency. In changing the incentive structure, care must be taken that service quality is not unintentionally compromised.