The Economic Benefit of Promoting Healthy Ageing and Community Care

Without a stronger focus on healthy ageing, population ageing will place substantial pressure on health and long-term care budgets, yet OECD countries are not fully capturing the potential of prevention.

This OECD report, part of the OECD Health Policy Studies series, examines how preventive interventions, reablement, and care delivered closer to home can promote healthy ageing cost-effectively. It structures its analysis around four pillars: prevention, health system adaptation, home care, and the continuum of care in the community. The report finds that spending on prevention remains low: in 2023, OECD countries devoted just 3 percent of total health spending to it. The consequences are visible in behavior and outcomes, nearly three-quarters (74 percent) of people aged 65 and over across the OECD do not meet the recommended minimum level of physical activity, and one in two people aged 65 to 74 has at least two chronic conditions.

The economic case is direct: OECD estimates suggest that a 10 percent increase in prevention spending is associated with a 0.9 percent reduction in the share of people with chronic conditions over five years, which in turn lowers healthcare spending. The report also addresses adapted housing, affordable home care, and community solutions such as expanded day care to counter social isolation and help people age well at home.

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