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Cost-Benefit Analyses of Sprinklers in Nursing Homes for Elderly

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  • Jaldell, Henrik

    ()
    (Dept. of Economics)

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    Abstract

    The risk of dying in fires in nursing homes is six times the risk of dying in fires at home in Sweden. The risk of being injured in nursing homes is even higher. The reason is that fire alarms do not help if people have problems moving around, or have dementia and do not understand what is going on. One way to reduce this risk is to install fire sprinklers. The benefits depend on the value we put on elderly people living in nursing homes. Their life expectancy is 3.2 years. This study measures the benefits and compares them in terms of the monetary value of full lives, life years and quality adjusted life years (QALYs) for deaths and injuries. The results show that sprinklers are cost-effective in newly built nursing homes no matter what value of life is used. However, if sprinklers are installed in already existing buildings, they are cost-effective only if the value of a statistical life is used.

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    File URL: http://www.kau.se/sites/default/files/Dokument/subpage/2012/02/2012_5_pdf_79891.pdf
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    Bibliographic Info

    Paper provided by Department of Economics, Karlstad University in its series Karlstad University Working Papers in Economics with number 5.

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    Length: 37 pages
    Date of creation: 04 Jun 2012
    Date of revision:
    Handle: RePEc:hhs:kaunek:0005

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    Postal: Dept of Economics, Karlstad University, Universitetsgatan 1, SE 651 88 Karlstad, Sweden
    Phone: 054 - 700 13 56
    Fax: 054 - 700 14 97
    Web page: http://www.kau.se/node/12323
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    Related research

    Keywords: QALY; value of statistical life; nursing home; fire safety; sprinklers; elderly;

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