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Does Long-Term Care Subsidisation Reduce Hospital Admissions?

Author

Listed:
  • Joan Costa-i-Font
  • Sergi Jimenez-Martin
  • Cristina Vilaplana

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.

Suggested Citation

  • Joan Costa-i-Font & Sergi Jimenez-Martin & Cristina Vilaplana, 2016. "Does Long-Term Care Subsidisation Reduce Hospital Admissions?," CESifo Working Paper Series 6078, CESifo.
    • Handle: RePEc:ces:ceswps:_6078
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    More about this item

    Keywords

    hospital admissions; hospital utilisation; long-term care reform; bed-blocking; hurdle Poisson model; Spain;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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