OBJECTIVES: The Multidisciplinary Risk Assessment and Management Program – Diabetes Mellitus (RAMP-DM) was associated with reduction in diabetes-related complications. This study aimed to evaluate the short-term and lifetime cost-effectiveness of RAMP-DM from the public health provider’s perspective in Hong Kong. METHODS: An in-depth cost study was conducted to estimate the program cost. The short-term cost-effectiveness of RAMP-DM was evaluated using three-year observed events of diabetes-related complications, program cost and public health service utilization cost. A discrete event model was built to estimate the lifetime cost-effectiveness of RAMP-DM. The transition probabilities (TP) from no complication to diabetes-related complications and mortality were derived from a longitudinal 5-year cohort study on 128,309 DM patients and applied to the usual care group. The hazard ratios of developing complications were used to adjust the TP in RAMP-DM group. The RAMP-DM set-up costs were applied to the first year for the RAMP-DM group, and the ongoing costs were applied to lifetime model. The annual direct medical costs and utility scores for various diabetes-related complications referred to our previous studies in Chinese DM population. For short-term Incremental cost-effectiveness ratios were measured by dividing incremental cost of RAMP-DM accrued over incremental quality-adjusted life years gained from RAMP-DM.  RESULTS: Over three–year period, the RAMP-DM group achieved clinical benefits of diabetes-related complications reduction in addition to a monetary saving in public health service utilization of US$2,703, resulting in a net saving of US$2,590 per subject after deduction of RAMP-DM program cost (US$113). Over lifetime, RAMP-DM was found to be cost-saving in terms of gaining 0.526 QALYs at a net saving of US$109 per subject over a lifetime. CONCLUSIONS: RAMP-DM was a cost-saving intervention in managing diabetic patients in short-term. Over lifetime, RAMP-DM was considered highly cost-effective benchmarked against a willingness-to-pay threshold of the annual GDP per capita in Hong Kong (US$38,123).