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Costs and benefits of home care for the elderly versus residential care: a comparison using propensity scores

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  • Lucy Kok
  • Caroline Berden
  • Klarita Sadiraj

Abstract

A comparison of the costs of residential care and home care shows that the former is more expensive for society. However, elderly people seem to be happier in residential care. All stakeholders, except the state (and thus the taxpayer), benefit if elderly people enter residential care. This reveals that payment systems in the Netherlands contain adverse incentives stimulating entry into residential care. The research is based on surveys of older people in the Netherlands living at home and those living in residential care homes in the period 2007–2009. Propensity score matching is used to match people living at home with those living in residential care. All costs of living and health care are compared for these two groups. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Lucy Kok & Caroline Berden & Klarita Sadiraj, 2015. "Costs and benefits of home care for the elderly versus residential care: a comparison using propensity scores," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(2), pages 119-131, March.
    • Handle: RePEc:spr:eujhec:v:16:y:2015:i:2:p:119-131
    DOI: 10.1007/s10198-013-0557-1
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    Cited by:

    1. Judith Bom & Pieter Bakx & Sara Rellstab, 2022. "Well‐being right before and after a permanent nursing home admission," Health Economics, John Wiley & Sons, Ltd., vol. 31(12), pages 2558-2574, December.
    2. Elena Gentili & Giuliano Masiero & Fabrizio Mazzonna, 2016. "The Role of Culture in Long-term Care," IdEP Economic Papers 1605, USI Università della Svizzera italiana.
    3. de Aguiar, Ana Raquel Pena & Ramos, Tânia Rodrigues Pereira & Gomes, Maria Isabel, 2023. "Home care routing and scheduling problem with teams’ synchronization," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    4. Azad Rahman & Delwar Akbar & John Rolfe & Julie Nguyen, 2019. "Developing a population wide cost estimating framework and methods for technological intervention enabling ageing in place: An Australian case," PLOS ONE, Public Library of Science, vol. 14(6), pages 1-19, June.
    5. Bakx, Pieter & Wouterse, Bram & van Doorslaer, Eddy & Wong, Albert, 2020. "Better off at home? Effects of nursing home eligibility on costs, hospitalizations and survival," Journal of Health Economics, Elsevier, vol. 73(C).
    6. Helen Weatherly & Rita Faria & Bernard Van den Berg & Mark Sculpher & Peter O’Neill & Kay Nolan & Julie Glanville & Jaana Isojarvi & Erin Baragula & Mary Edwards, 2017. "Scoping review on social care economic evaluation methods," Working Papers 150cherp, Centre for Health Economics, University of York.
    7. Nguyen Tan Loi & Nguyen Tien Dung & Ho Nhut Quang, 2021. "The cost effectiveness of aging in place: A literature review," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - SOCIAL SCIENCES, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 11(1), pages 40-54.
    8. Leporatti Lucia & Montefiori Marcello, 2020. "The Challenge of Organizing Elderly Care Programmes: Optimal Policy Design under Complete and Asymmetric Information," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-15, January.
    9. Krabbe-Alkemade, Yvonne & Makai, Peter & Shestalova, Victoria & Voesenek, Tessa, 2020. "Containing or shifting? Health expenditure decomposition for the aging Dutch population after a major reform," Health Policy, Elsevier, vol. 124(3), pages 268-274.
    10. Na, Eunkyung & Jung, Yoonhyuk & Kim, Seongcheol, 2023. "How do care service managers and workers perceive care robot adoption in elderly care facilities?," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    11. Maaike Diepstraten & Rudy Douven & Bram Wouterse, 2019. "Can your house keep you out of a nursing home?," CPB Discussion Paper 397, CPB Netherlands Bureau for Economic Policy Analysis.
    12. Maaike Diepstraten & Rudy Douven & Bram Wouterse, 2019. "Can your house keep you out of a nursing home?," CPB Discussion Paper 397.rdf, CPB Netherlands Bureau for Economic Policy Analysis.

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    More about this item

    Keywords

    Home care; Residential care; Long-term care; Cost–benefit analysis; Propensity score matching; J14; D61; C31;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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