Ensuring financial sustainability is at the heart of the challenge for policy-makers to provide long-term care (LTC) for older adults. In Brief 8 of the research brief series, Financing LTC: Lessons for Low- and Middle-Income Countries, the WHO Centre for Health Development (WHO Kobe Centre – WKC) presents global evidence on what is needed for financial sustainability in LTC to guide policies and investments in these countries.
Financial sustainability in LTC is a forward-focused concept. It requires policies that ensure equitable access to services, while balancing revenues and expenditures over time to allow for increases in demand, and considering the broader range of health, social and economic outcomes. Financial sustainability must not compromise the need for financial protection for those who need care.
“Countries with developed LTC systems project revenue targets or global budgets needed to provide services, and special funds can be developed to help meet funding gaps. The evidence shows that some countries have broadened the revenue base for LTC through intergenerational funding to cushion future LTC costs, and diversify revenue sources,” says Dr Sarah Barber, WKC Director and author of the series.
Low-and middle-income countries with younger populations have the opportunity to strengthen domestic taxation to raise revenues and invest in human resources, infrastructure, and institutions before the demands for long-term care increase.
“Delaying the demand for LTC can reduce budgetary pressure. For instance, cost-effective technology and housing modifications that promote independence and prevent injury among older adults can be included in long-term care benefits packages and delay the need for intensive long-term care services, enabling people to stay in their homes as long as possible,” says Dr Barber.
“Investing in health is essential to prevent the onset of age-related disabilities such as stroke and dementia. These choices are influenced by legislation, regulations, and policies to help control risk factors for diseases that affect people in later life. The bottom line is that it’s never too early to invest in long-term care,” she concluded.