The high cost of policy termination

Most public policy terminations are promoted as cost saving moves when, in fact, there are often considerable short term costs associated with closing down public programs. Termination studies recognized these costs years ago and several published case studies provide examples, but no previous research has focused exclusively on the cost question. This research surveys the literature of policy termination and draws out relevant conceptualizations and examples in order to develop a better understanding of termination costs. The data from existing studies is supplemented by a thorough examination of a 1981 policy termination---the end of the entitlement of free health care for merchant seamen and the closure of eight Public Health Service (PHs) hospitals. The data verifies the expectation that the termination process involves considerable costs to prevent damage to communities, constituents, and staff.