Journal Article

Can Home Care Services Achieve Cost Savings in Long-Term Care for Older People?

Vernon L. Greene, Jan Ondrich and Sarah Laditka

in The Journals of Gerontology: Series B

Published on behalf of The Gerontological Society of America

Volume 53B, issue 4, pages S228-S238
Published in print July 1998 | ISSN: 1079-5014
Published online July 1998 | e-ISSN: 1758-5368 | DOI: http://dx.doi.org/10.1093/geronb/53B.4.S228
Can Home Care Services Achieve Cost Savings in Long-Term Care for Older People?

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Objective. To determine whether efficient allocation of home care services can produce net long-term care cost savings.

Methods. Hazard function analysis and nonlinear mathematical programming.

Results. Optimal allocation of home care services resulted in a 10% net reduction in overall long-term care costs for the frail older population served by the National Long-Term Care (Channeling) Demonstration, in contrast to the 12% net cost increase produced by the demonstration intervention itself.

Discussion. Our findings suggest that the long-sought goal of overall cost-neutrality or even cost-savings through reducing nursing home use sufficiently to more than offset home care costs is technically feasible, but requires tighter targeting of services and a more medically oriented service mix than major home care demonstrations have implemented to date.

Journal Article.  0 words. 

Subjects: Geriatric Medicine ; Psychology ; Gerontology and Ageing

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