Administrative, clinical and participant payment costs of a six month paid work activity program for clients with schizophrenia were calculated Average cost was $1403.07/per client or approximately $15.52 per client day. Rehospitalization costs for participants (n = 56) were compared at six months with a control group randomized to a No-Pay work program (n = 36). Costs of the paid work program were offset by lower costs for rehospitalization. Over the following three years, hospitalization costs were consistently lower for those in the paid work program; every program dollar spent yielded a $5.69 reduction in rehospitalization costs. Statistical comparison between groups was not significant indicating that while costs for the program were offset, savings may have been due to chance.