Dementia Diagnosis and Care Costs: A New Study Reveals Alarming Trends

A recent study published in the Journal of Innovation in Aging has shed light on the relationship between dementia diagnosis and care costs in Hong Kong. According to the research, individuals with dementia are more likely to incur higher costs in both residential and community care settings. The study, led by Gloria H. Y. Wong and her team at the University of Reading, analyzed data from 1,603 publicly funded long-term care recipients in Hong Kong and found that a dementia diagnosis is associated with an additional 13% and 23% care costs in residential and community care settings, respectively.

Key Takeaways:

• A dementia diagnosis is associated with an additional 13% and 23% care costs in residential and community care settings, respectively.
• People with more severe cognitive impairment incur greater long-term care costs, with the highest difference (a 189% increase) found in informal care costs in community care settings among those with moderate-to-severe cognitive impairment.
• Formal care costs were insensitive to cognition status but were consistently higher with a dementia diagnosis in community care settings, whereas informal care costs were less associated with a diagnosis but increased with cognitive impairment severity.
• Having a diagnosis of dementia and poorer cognition are associated with higher long-term care costs in both residential and community care settings.
• Practitioners and policymakers need to ensure that individuals with cognitive impairment without a dementia diagnosis receive the appropriate level of care.
• The research highlights the need for more effective diagnosis and care planning for individuals with dementia and cognitive impairment.

Statistics:

• 1,603 participants in the study were publicly funded long-term care recipients in Hong Kong.
• A dementia diagnosis is associated with an additional 13% and 23% care costs in residential and community care settings, respectively.
• People with moderate-to-severe cognitive impairment incur 189% higher informal care costs in community care settings.
• Formal care costs were insensitive to cognition status but were consistently higher with a dementia diagnosis in community care settings.
• 13% increase in care costs in residential care settings with a dementia diagnosis.
• 23% increase in care costs in community care settings with a dementia diagnosis.

Sources:

• Wong GH, Shi C, Choy JCP, et al. Association of dementia diagnosis, cognitive impairment levels, and their combination with care costs among publicly funded long-term care recipients. Innovation in Aging 2025;9(9).
• Innovations in Aging. (2025) p 160.
• University of Reading. School of Psychology and Clinical Language Sciences.
• Oxford University Press. (Publisher contact information)
• NewsRx. (2025) Mental Health Weekly Digest. October 20, 2025; p 160.