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Governance and finance of long-term care - University of Birmingham

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Allen et al., 2011 <strong>Governance</strong> <strong>and</strong> Financing <strong>of</strong> LTC | European Overview<br />

systems <strong>of</strong> assessing needs <strong>and</strong> entitlement. This demonstrates the importance <strong>of</strong> a co-­‐ordinated<br />

approach to the devolution <strong>of</strong> responsibility. Creation <strong>of</strong> a coordinated <strong>and</strong> continual approach to<br />

addressing LTC need is complicated by the fact that the share <strong>of</strong> tax to satisfy social needs <strong>of</strong> older<br />

people is not earmarked for LTC. This increases risks that <strong>finance</strong> may disappear into the general<br />

budgets <strong>of</strong> self-­‐governing regions (Bednárik et al., 2010).<br />

4.2.2 De-­‐centralising LTC systems<br />

The different structures which underpin the governance <strong>of</strong> LTC in <strong>term</strong>s <strong>of</strong> funding, organisation <strong>of</strong><br />

institutions <strong>of</strong> government <strong>and</strong> the role <strong>of</strong> different sectors in assessment <strong>and</strong> provision, also complicate<br />

the measurement <strong>and</strong> comparison <strong>of</strong> decentralisation in LTC systems. Two different levels <strong>of</strong><br />

decentralised structures are apparent within the selection <strong>of</strong> European countries, with some <strong>of</strong> them<br />

incorporating aspects <strong>of</strong> both.<br />

• Decentralisation <strong>of</strong> LTC to municipal/local council level (SE, DK, UK, FI, CH, FR, SK): Within these<br />

predominantly tax-­‐funded systems, responsibility for planning, co-­‐ordinating, financing <strong>and</strong><br />

delivering LTC services be<strong>long</strong>s to the lowest level <strong>of</strong> government.<br />

• Regional government/government agency responsibility (AT, EL, FR) or regional LTC bodies (NL, DE),<br />

consolidation <strong>of</strong> LTC administrative function <strong>and</strong> one-­‐stop-­‐shops (CH, FR) for LTC users <strong>and</strong><br />

pr<strong>of</strong>essionals: In many cases these approaches demonstrate attempts to re-­‐centralise or consolidate<br />

local actors in order to strategically address LTC need.<br />

The development <strong>of</strong> de-­‐centralisation <strong>of</strong> LTC policies on a vertical line shows tiered responsibilities<br />

across national, regional <strong>and</strong> local levels with insurance companies playing varying roles in some<br />

countries. Only in selected cases (e.g. UK, FI, SE, NL) the legal framework for LTC policies is at the state<br />

level, while health <strong>care</strong> is in most cases regulated at the central level. The state retains responsibility for<br />

monitoring <strong>and</strong> analysing health <strong>and</strong> medical <strong>care</strong> (although in some cases this is also the remit <strong>of</strong><br />

localised trusts, e.g. UK), produce legislation <strong>and</strong> other guidelines. The practical tasks <strong>of</strong> service delivery<br />

are managed by municipal bodies or insurance companies (e.g. DE, FR, NL). In several countries (e.g. SE,<br />

CH, AT, SK) different competences at regional <strong>and</strong> municipal levels are established. Crucial for strong<br />

local <strong>care</strong> authorities are a m<strong>and</strong>atory legal framework <strong>and</strong> an adequate level <strong>of</strong> freedom in financial<br />

decisions. In Bismarckian countries with powerful health <strong>care</strong> insurers, local or regional authorities<br />

should have enough countervailing power to be a valuable partner in designing a well functioning LTC<br />

system.<br />

Decentralisation <strong>of</strong> LTC functions <strong>and</strong> responsibilities to a local level can be exemplified in the Finnish,<br />

Swedish <strong>and</strong> Danish systems:<br />

• Finnish municipalities are legally obliged to organize health <strong>and</strong> social services for their residents.<br />

There are currently 342 municipalities with a median size <strong>of</strong> less than 6,000 inhabitants. Municipal<br />

services for older people comprise <strong>of</strong> home <strong>care</strong>, support for informal <strong>care</strong>, service housing,<br />

institutional <strong>care</strong>, preventive <strong>care</strong> services <strong>and</strong> rehabilitation. A municipality can provide the services<br />

independently, together with other municipalities or purchase services from private sector providers.<br />

The municipality can also admit the client a service voucher for purchasing services from<br />

prede<strong>term</strong>ined private providers. In addition, private companies <strong>of</strong>fer elderly <strong>care</strong> services ranging<br />

from various types <strong>of</strong> support services to all inclusive service housing. The municipality (or several<br />

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