The effect of Long-Term Care (LTC) benefits on healthcare use

Manuel Serrano-Alarcón, Helena Hernández-Pizarro, Guillem López i Casasnovas and Catia Nicodemo

No 2021-12, Working Papers from FEDEA

Abstract: The healthcare systems of most European countries are currently operating under extreme levels of pressure. Part of this pressure is due to a rising demand for healthcare caused by an increase in comorbidities and life expectancies amongst the populations they serve. The implementation of a good system of Long-Term Care (LTC) could reduce this pressure if it promotes preventative habits and treatment adherence, or reduces age-related risks. In this study we aim to understand the role of LTC benefits in reducing healthcare use in primary and secondary care by exploring a detailed administrative database. Results show that a monthly LTC benefit of around 412 euros could reduce avoidable hospitalizations by 60% and also unscheduled "walk-in" patient visits by a half, with the majority relating to social exclusion cases. Furthermore, LTC benefits could promote preventive healthcare, improving access to healthcare services such as cataract surgery. These findings have important policy implications for the organization of the LTC and healthcare systems, suggesting that allocating resources to LTC might not only increase the welfare of LTC beneficiaries, but also help to contain the increasing costs of healthcare.

Date: 2021-08
New Economics Papers: this item is included in nep-age, nep-hea and nep-isf
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