Does Long-Term Care Subsidisation Reduce Unnecessary Hospitalisations?

52 Pages Posted: 25 Oct 2016

See all articles by Joan Costa-Font

Joan Costa-Font

London School of Economics & Political Science (LSE)

Sergi Jimenez-Martin

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Cristina Vilaplana

University of Murcia

Date Written: March 2017

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: hospitalisation, long-term care reform, Spain, bed-blocking, hurdle Poisson model

JEL Classification: I180, J140, H530

Suggested Citation

Costa-Font, Joan and Jimenez-Martin, Sergi and Vilaplana, Cristina, Does Long-Term Care Subsidisation Reduce Unnecessary Hospitalisations? (March 2017). CESifo Working Paper Series No. 6078. Available at SSRN: https://ssrn.com/abstract=2858807

Joan Costa-Font (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://https://joancostaifont.org/

Sergi Jimenez-Martin

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
(34) 93 542 16 67 (Phone)
(34) 93 542 17 46 (Fax)

Cristina Vilaplana

University of Murcia ( email )

Avda Teniente Flomesta, 5
Murcia, Murcia 30100
Spain

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