Analysis of the Benefits and Costs of Channeling

The principal finding of this report is that Channeling led to an increase in total costs for clients, including costs for medical and long-term care services and costs for shelter, food and other daily living expenses. The Basic Case Management Model appeared to increase these costs by about $1,300 during the 18-month period of the demonstration; this represents an increase of approximately 7% over the $18,500 per client costs expected in the absence of Channeling. For the Financial Control Model, costs per client increased by approximately $3,400 for the 18-month period or approximately 15% over the $23,000 expected in the absence of Channeling. In both models, these increased costs appeared to produce benefits in the form of reduced unmet client needs and increases in the reported levels of life satisfaction by clients. Primary caregivers also reported more satisfaction with their lives and with the care arrangements for clients. The underlying question is whether the largely intangible benefits of Channeling are worth the net costs of producing them. [142 PDF pages]