Extensions of residential care in the federal states of Austria - quantitative and qualitative effects of the allocation of public funds compared to extensions of formal home care

Due to changes in the demography towards an ageing society, the issue of financing and efficiency of systems of long-term care becomes more and more important for policy makers. Due to a higher cost efficiency compared to residential care the focus typically lies on extending the supply of formal domestic care. The application of formal domestic care, however, very often – especially in increased care levels – requires an additional person living in the same household as the person depending on care. Thus, for the evaluation of long-term financing of care systems and the increased focus on extensions of formal home care, it seems to be necessary to include changes in the demography, the structure of housholds, labour supply (especially among women), prevalences and health scenarios in the analysis. Additionally, research should not focus on Austria as a whole but on the level of the federal states for two reasons: First, demographic and household developments differ substantially between some of the states; second, development plans for geriatric care systems also differ between the states. The aim of this study therefore is on the one hand to qualitatively assess the potential and limits of the different types of formal care based on a discussion of the recent literature and on surveying experts. On the other hand we use macro simulation techniques to forecast demand and costs of the different types of formal care in each federal state to 2020 and 2025, respectively, and for different scenarios of extension of formal home and residential care.