Public Money for Private Elderly Care

More freedom of choice, but not everybody avails themselves of the options to the same extent

In the Netherlands, people who have a right to publicly funded nursing home care can choose to receive a personal budget (PGB) or a complete or modular home package (VPT or MPT). These arrangements increase the sense of freedom of care in a self-chosen setting: 20% of PGB users and 50% of VPT users use that money for a stay at a private facility. These are predominantly seniors with a high income and minimal care needs. Low-income people have fewer options, in effect, because one has to pay extra for many of the additional provisions.

Key Takeaways for the Industry

• The options for receiving care in a setting of the patient’s choosing through the PGB, VPT, and MPT arrangements are not equally taken advantage of by people.
• This raises the question of how alternative types of accommodation for low-income seniors might be adequately financed.
• Little is known, however, about the waiting times and quality of care in regular and private nursing homes, meaning that the added value of the private supply is uncertain.