The Wall Street Journal Investigates: How Does Dementia Impact Health-Care Spending?

By / Posted on April 9th, 2013

Researchers from the Rand Corporation recently published a study that found medical costs of treating dementia totaled $109 billion in 2010. This is more than was spent on heart disease or cancer! What can be done now to slow increases in expenses and improve care? The Wall Street Journal Real Time Economics Blog highlights the financial impact of The Green House model:          

RWJ and a nonprofit, NCB Capital Impact, have also funded the Green House Project. Each Green House accommodates 10 to 12 seniors with medical help provided by certified nursing assistants.

David Farrell, The Green House Project director, says the small homes allow for less administrative costs and allows residents to remain ambulatory, even with a walker, rather than depending on wheelchairs.

Plus, the nursing staff develop a closer relationship with a small number of [Elders]. “The [CNAs] can pick up on subtle changes in the elderly,” which leads to preemptive care rather than medical emergencies, Mr. Farrell says. 

In a Green House home more money is spent on care and less on administration.  The Elder to staff ratio makes for better care and less hospitalization of Elders.  To learn more, read about The Green House Project’s cost saving summary.  Read the full Wall Street Journal article here or learn more about The Green House model.