In monitoring alcoholism treatment for its employees, United Technologies Corporation concluded that additional levels of treatment alternatives were needed. In a five-year period the average length of alcoholism treatment doubled and costs per patient tripled without improving treatment outcome. In addition, certain clinical needs of some employees and their families were not best served by inpatient treatment. Analysis of the first year outcome of a day treatment program indicates that day treatment provides an effective alternative method for alcoholism treatment. Day treatment proves to be effective both as a first treatment intervention and in instances of relapse.