Abstract
Congregate housing has been proposed as a substitute for institutionalization for elderly who do not require skilled nursing care, but who are too frail for conventional housing. Cost comparisons with long-term care have attributed exaggerated savings to congregate housing by employing data that fails to control for elderly with equivalent support needs in both facility types. This paper reviews past cost comparisons and presents new findings for elderly with comparable support needs. Different assumptions about age and capital cost of the facilities, method of reimbursement (public and private), and level of resident functional ability demonstrate cast savings attributable to congregate housing ranged from $300-$6072 per resident per year in 1985.
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