Does Long-Term Care Subsidisation Reduce Hospital Admissions?

Joan Costa-i-Font, Sergi Jimenez-Martin and Cristina Vilaplana
Authors registered in the RePEc Author Service: Joan Costa-i-Font

No 6078, CESifo Working Paper Series from CESifo

Abstract: One of the intended effects of an integrated network of long-term care (LTC) services lies in the reduction of (unnecessary) health care utilisation. This paper draws upon the quasi-experimental evidence from Spain to examine the causal effect of the expansion of affordable long-term care (LTC) access (after the introduction of a new universal LTC subsidy) on hospital admissions (both on the internal and external margin) and its duration or length of stay (LOS). We find robust evidence of a reduction in both measures of hospitalisation among both those receiving a caregiving allowance and, though less intense, among beneficiaries of publicly funded home care (amounting to 11% of total hospital costs), and among regions coordinating health and social care. Consistently, a reduction in the subsidy is found to significantly attenuate such effects.

Keywords: hospital admissions; hospital utilisation; long-term care reform; bed-blocking; hurdle Poisson model; Spain (search for similar items in EconPapers)
JEL-codes: H53 I18 J14 (search for similar items in EconPapers)
Date: 2016
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Working Paper: Does long-term care subsidisation reduce hospital admissions? (2016)
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