Understanding the impact of service environ ments, and especially residential environments, and exploring their meaning for elderly people became an important research issue in ecological gerontology during the last two decades. One of the major poli cy questions is, thus, how to improve quality of care and quality of life in the various service envi ronments to the elderly? In 1994, 220 long-term-care facilities were op erating in Israel with a supply of 18 000 beds. The rate of institutionalization in Israel is relatively low: 4 .4% (44.3 beds per 1000 Jewish elderly in the pop ulation) as compared to 8-11% in Holland, Sweden, Canada and Switzerland. This, even though the overall rate of disability in activities of daily living (ADL) among the elderly is very similar to that of the United States and other European countries. The rel atively lower rate may be related to the existence of a strong family-oriented informal support system , as well as a growing network of community and home based services (1). Israel is "somewhere in the hap py medium" between some European countries and America in the rate of community us institutional ser vices. It should be noted , however, that historically in stitutional care was the first type of services for the elderly developed in Israel , preceding community services by some 50 years (2). In Israel, the licensing and supervisory mandate for residential care is divided between two ministries: the Ministry of Labor and Social Affairs is in charge of institutions for the well aged and the semi-frail el derly, while the Ministry of Health is responsible for the mentally infirm elderly and their nursing. This di vision contributes to fragmentation , and impacts on quality of care. In order to overcome some of the shortcomings inherent in such a division, and to meet the growing needs for services for the aged, ES HEL, the Association for the Planning and Devel opment of Services for the Aged in Israel, was es tablished 25 years ago. ESHEL's major goals are to expand existing services, to develop new and inno vative services, and to improve the quality of the services. During the last five years , ESHEL placed priority on improving the quality of institutional services in or der to improve residents' quality of life. Four major demonstration projects were introduced: a nutri tion program within the framework of health pro motion; residents ' participation program; quality of care for the mentally infirm; and quality of life and personal space project. The study reported here is part of this fourth project that introduced professional and organiza tional changes into residential settings , and included an evaluation research based on the models of per son-environment fit (3-6), using parts of the Glass (7) quality of life model. The aim was to study the relations between per ceived environmental impact, and residents' quality of life and well-being. Specifically, the goals were : 1) to measure and evaluate environmental aspects which im pact on residents' quality of life ; 2) to use various eval uation tools, quantitative and qualitative, to capture the objective and subjective dimensions of quality of life; and 3) to introduce organizational changes, based on the findings, through "planned intervention" fo cusing on the "whole " institution. The study was conducted in 3 non-profit medium sized (200 and 100 beds) facilities in Haifa, Israel, which include all levels of care. In each home , a 30 % sample of residents (N=120) and 40 staff members were interviewed. Close to 85% of the residents were
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