Community Care Costs the Health System Less!

But then who bears the cost?

Politicians are great supporters of caregivers! We keep hearing how community care is better and cheaper than institutional care.

Right! It may be cheaper for public health systems, but is it cheaper for families?   Back in 1999, University of Alberta researchers Norah Keating and Janet Fast asked that question – “Is community care really cheaper when the total cost of care is considered?”

As an economist, Janet Fast knew that costs don’t just go away.  They have to be borne by someone. So yes — care at home by unpaid family caregivers is cheaper when only public sector costs are considered.  But consider the costs to caregivers and family. The costs to families who provide care include:

• out-of-pocket expenditures, 
• unpaid labor,
• costs of  not being able to work,
• costs of lost work opportunities like promotions, management positions,
• lost pension credits,
• lower pensions,  and,
• emotional, physical and social well-being costs.

Roy Romanow in his report, Building on Values, The Future of Health Care in Canada, suggested that the health system would not be able to pay for all the care provided by family caregivers.  He recommended more support for family caregivers — but little has been done.

The Canadian Caregivers Coalition recommends that the Canada’s Federal Government should take the following action to support family care:

1. Announce a National Caregiver Strategy as the basis for a dialogue with the provinces and territories regarding coordinated measures that focus on family caregivers and can be readily implemented 
2. Enhance current financial tax credits so that more caregivers can benefit 
3. Modify the Canada Pension Plan so that those with reduced income as a result of family caregiving are protected 
4. Support cross country consultations to enhance the General Social Survey Cycle 26 which is dedicated to family caregiving 

Read the Canadian Caregivers Coalition recommendations.

Reference: Fast, J.E., Williamson, D.L., Keating, N.C. (1999). The hidden costs of informal elder care.  20(3); 301-326, DOI: 10.1023/A:1022909510229