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.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

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