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The British Journal of Psychiatry (2001) 179: 261-266
© 2001 The Royal College of Psychiatrists

Costs of dementia in England and Wales in the 21st century

PAUL McNAMEE, MSc

Department of Epidemiology & Public Health, School of Health Sciences, University of Newcastle

JOHN BOND, BA, DEBBIE BUCK, BA and the Resource Implications Study of the Medical Research Council Cognitive Function and Ageing Study

Centre for Health Services Research, School of Health Sciences, University of Newcastle, Newcastle-upon-Tyne, UK

Correspondence: P. McNamee, Department of Epidemiology & Public Health, School of Health Sciences, 21 Claremont Place, University of Newcastle, Newcastle-upon-Tyne NE2 4AA, UK

Declaration of interest None. Funding described in Acknowledgements.

Background An important factor determining future health care expenditure is the relationship between ageing, health status and development of age-related disorders such as dementia.

Aims To estimate the formal care costs associated with dementia in England and Wales between 1994 and 2031.

Method Epidemiological cost model, applied to individuals aged 65 years or over with dementia, using estimates of life expectancy with dementia and dementia-free life expectancy.

Results Total costs per year were £0.95 billion (men) and £5.35 billion (women) using 1994 population estimates. For 2031, costs were £2.34 billion and £11.20 billion, respectively. Reduced dementia prevalence rates and improvements in mental and physical functioning resulted in lower estimates: £1.01 billion (men) and £5.77 billion (women), and £1.65 billion (men) and £7.87 billion (women), respectively.

Conclusions Future increases in the population aged 65 years or over lead to rising formal care costs. However, the magnitude of cost changes depends on assumptions over dementia prevalence and levels of mental and physical functioning.




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