The impact of psychological interventions on the use of medical services was evaluated by examining the outcome of 91 studies published between 1967 and 1997 using meta‐analytic techniques and percentage estimates. Psychological treatments included various forms of psychotherapy, behavioral medicine, and psychiatric consultation. Patients included those undergoing medical procedures such as surgery, patients with a history of ovemtilization, and patients being treated only for psychological disorders including substance abuse. Results provided evidence for a medical cost‐offset effect, specifically in the domain of behavioral medicine. Average savings resulting from implementing psychological interventions was estimated to be about 20%. About one third of the articles demonstrated that dollar savings continued to be substantial even when the cost of providing the psychological intervention was subtracted from the savings. The role of moderating variables such as patient age and type of problem was analyzed and discussed.