Total healthcare costs of deinstitutionalized long-term care provision in the Netherlands: an instrumental variable analysis

Abstract Background The Netherlands has reformed its long-term care (LTC) system to improve its financial sustainability by reducing access to in-kind nursing-home care and stimulating care within the home setting. This reform led to the rise of small-scale homelike nursing homes (SHNH) that are pub...

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Main Authors: Erik M. E. Wackers, Florien M. Kruse, Hubert J. J. M. Berden, Simone A. van Dulmen, Niek W. Stadhouders, Patrick P. T. Jeurissen
Format: Article
Language:English
Published: BMC 2025-04-01
Series:BMC Health Services Research
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Online Access:https://doi.org/10.1186/s12913-025-12693-x
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author Erik M. E. Wackers
Florien M. Kruse
Hubert J. J. M. Berden
Simone A. van Dulmen
Niek W. Stadhouders
Patrick P. T. Jeurissen
author_facet Erik M. E. Wackers
Florien M. Kruse
Hubert J. J. M. Berden
Simone A. van Dulmen
Niek W. Stadhouders
Patrick P. T. Jeurissen
author_sort Erik M. E. Wackers
collection DOAJ
description Abstract Background The Netherlands has reformed its long-term care (LTC) system to improve its financial sustainability by reducing access to in-kind nursing-home care and stimulating care within the home setting. This reform led to the rise of small-scale homelike nursing homes (SHNH) that are publicly financed by home-care packages. Small-scale care may require additional financial resources and personnel. Our aim is to compare the total healthcare costs of institutional in-kind nursing homes and deinstitutionalized home-like care homes. Methods We conducted an instrumental variable (IV) analysis to adjust for selection effects between both groups, using nationwide data including all LTC users. We use distance to the nearest provider as an instrument. In addition, we conducted semi-structured interviews with managers and policymakers to provide context for the quantitative data and validate our findings. Results Baseline statistics demonstrate that while LTC costs are lower in deinstitutionalized settings, total healthcare costs are higher, mainly due to additional medical costs outside the LTC system. After adjustment for observable and unobservable user characteristics, no significant cost differences were found. Conclusions This study may suggest that deinstitutionalization of LTC provision through publicly funded SNHNs primarily resulted in selection effects and spillover effects to other healthcare sectors, while for the marginal client, no clear difference in healthcare costs was observed.
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spelling doaj-art-0590216157e34d3b9f796f64a8a9c04b2025-08-20T02:11:41ZengBMCBMC Health Services Research1472-69632025-04-0125111110.1186/s12913-025-12693-xTotal healthcare costs of deinstitutionalized long-term care provision in the Netherlands: an instrumental variable analysisErik M. E. Wackers0Florien M. Kruse1Hubert J. J. M. Berden2Simone A. van Dulmen3Niek W. Stadhouders4Patrick P. T. Jeurissen5IQ Health, Radboud University Medical Center, Radboud Institute for Health SciencesIQ Health, Radboud University Medical Center, Radboud Institute for Health SciencesIQ Health, Radboud University Medical Center, Radboud Institute for Health SciencesIQ Health, Radboud University Medical Center, Radboud Institute for Health SciencesIQ Health, Radboud University Medical Center, Radboud Institute for Health SciencesIQ Health, Radboud University Medical Center, Radboud Institute for Health SciencesAbstract Background The Netherlands has reformed its long-term care (LTC) system to improve its financial sustainability by reducing access to in-kind nursing-home care and stimulating care within the home setting. This reform led to the rise of small-scale homelike nursing homes (SHNH) that are publicly financed by home-care packages. Small-scale care may require additional financial resources and personnel. Our aim is to compare the total healthcare costs of institutional in-kind nursing homes and deinstitutionalized home-like care homes. Methods We conducted an instrumental variable (IV) analysis to adjust for selection effects between both groups, using nationwide data including all LTC users. We use distance to the nearest provider as an instrument. In addition, we conducted semi-structured interviews with managers and policymakers to provide context for the quantitative data and validate our findings. Results Baseline statistics demonstrate that while LTC costs are lower in deinstitutionalized settings, total healthcare costs are higher, mainly due to additional medical costs outside the LTC system. After adjustment for observable and unobservable user characteristics, no significant cost differences were found. Conclusions This study may suggest that deinstitutionalization of LTC provision through publicly funded SNHNs primarily resulted in selection effects and spillover effects to other healthcare sectors, while for the marginal client, no clear difference in healthcare costs was observed.https://doi.org/10.1186/s12913-025-12693-xLong-term careHealthcare costsNursing homesHealth policy
spellingShingle Erik M. E. Wackers
Florien M. Kruse
Hubert J. J. M. Berden
Simone A. van Dulmen
Niek W. Stadhouders
Patrick P. T. Jeurissen
Total healthcare costs of deinstitutionalized long-term care provision in the Netherlands: an instrumental variable analysis
BMC Health Services Research
Long-term care
Healthcare costs
Nursing homes
Health policy
title Total healthcare costs of deinstitutionalized long-term care provision in the Netherlands: an instrumental variable analysis
title_full Total healthcare costs of deinstitutionalized long-term care provision in the Netherlands: an instrumental variable analysis
title_fullStr Total healthcare costs of deinstitutionalized long-term care provision in the Netherlands: an instrumental variable analysis
title_full_unstemmed Total healthcare costs of deinstitutionalized long-term care provision in the Netherlands: an instrumental variable analysis
title_short Total healthcare costs of deinstitutionalized long-term care provision in the Netherlands: an instrumental variable analysis
title_sort total healthcare costs of deinstitutionalized long term care provision in the netherlands an instrumental variable analysis
topic Long-term care
Healthcare costs
Nursing homes
Health policy
url https://doi.org/10.1186/s12913-025-12693-x
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