The purpose of this manual is to guide and assist alcohol and other drug abuse treatment programs to maximize cost recovery from third party reimbursements. It is intended to be a guide for planning and decision making rather than a resource manual. The text is based on the experiences of agencies in six states participating in a demonstration project designed to identify problems in developing and implementing third party payment systems. Key issues such as client and provider eligibility and services are covered. Third party payment mechanisms are described, including medicaid, supplementary security income, and health insurance. Other topics include confidentiality, administrative and financial management of treatment and rehabilitation programs, record keeping, collection procedures, and cost-finding procedures. Sample billing forms are also included. (JAC)