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Home and Community Support versus Residential Care Cost Comparison

Sapere Research Group / RNZ

Publisher: Radio New Zealand

Funding & Finance
Brief
Sapere Research Group / RNZ
Published March 2026
Authority4/5Freshness5/5Relevance5/5KB value5/5
Evidence class

Sector evidence

Sector body

Reviewed

August 2026

Next review not yet scheduled

Scope

New Zealand

High confidence

Status

published

SNZ editorial review

Evidence boundary: This record summarises the cited source. It does not establish local availability, individual eligibility, or professional advice.

Short Answer

RNZ reports headline findings from a January 2024 Sapere analysis for Health NZ comparing public spending on subsidised residential care and home and community support.

Key Points

  • •Average Health NZ spend on a subsidised rest-home client in 2022/23 was about $65,000 a year.
  • •Average spend per home and community support client was roughly $7,400, including in-between travel.
  • •The populations receive different levels of care, so the figures cannot establish an efficiency saving.
  • •The Aged Care Association disputes the comparison as cost displacement rather than proven efficiency.
  • •Use the figures as a system-spend comparison only, never as a saving attributable to PiP.

Full Summary & Notes

RNZ reports headline findings from a January 2024 Sapere analysis for Health NZ comparing public spending on subsidised residential care and home and community support. The figures are directionally useful for ageing-in-place policy, but they are not a like-for-like efficiency comparison because the populations receive different levels of care and the comparison excludes costs borne by whānau and workers.

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