Can home care services achieve cost savings in long-term care for older people?

Vernon L. Greene, Jan Ondrich, Sarah Laditka

Research output: Contribution to journalArticlepeer-review

42 Scopus citations


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.

Original languageEnglish (US)
Pages (from-to)S228-S238
JournalJournals of Gerontology - Series B Psychological Sciences and Social Sciences
Issue number4
StatePublished - 1998

ASJC Scopus subject areas

  • Health(social science)
  • Sociology and Political Science
  • Life-span and Life-course Studies


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