Newly published research supports investment in home and community care

(Toronto, Ontario. September 7, 2023.) Research has just been published that provides data to support investing in home and community care in Ontario.

Economic Evidence for Home and Community Care Investment: The Case for Ontario PSW Wage Parity, published this month in Longwoods Healthcare Policy, uses available personal support worker (PSW) wage data to build an evidence-based business case to demonstrate that even with equitable pay for point-of-care providers working in the sector, home and community care remains a less expensive option for delivering care in Ontario.

“This evidence aligns with the government’s announced plans to invest more than $1 billion to help more Ontarians age in place,” noted Deborah Simon, CEO of Ontario Community Support Association (OCSA). “While other investments are also needed, ensuring PSWs are compensated equitably across the health sector will mean support for more Ontarians and significant cost savings for the province.”

“Working alongside family caregivers, home and community care PSWs support clients to live independently at home, often caring for those with complex needs and requiring specialized care. However, they are paid significantly less than PSWs working in institutional long-term care homes (ILTC) or in hospitals,” shared Simon.

A graph showing patient costs per day including psw wage increase

PSWs in the home and community care sector provide the bulk of paid care to over a million Ontarians each year. But more than 30% of Ontarians who require home or community care supports cannot access them because of a serious shortage of PSWs in the sector.

“Even if wages for home care PSWs were increased to match those working in ILTCs, the cost per patient per day would still be lower for home care than for care provided in a long term care setting. This would result in significant cost-savings for our publicly-funded health care system by delaying entry to ILTC for those who are able to remain in community with homecare support,” noted health economist Dr. Katherine Zagrodney, Senior Research Associate, Quantitative Lead at VHA Home HealthCare, who conducted the research for OCSA.

A graph showing the psw wages by sector for home care and long-term care

This new analysis uses the example of wages for PSWs to show that even with investment to align wages between home and community care and ILTCs consistent, home and community care remains the most efficient way to deliver care. The wage discrepancy between sectors experienced by PSWs also exists with other healthcare roles. Future analyses could examine wages for nursing or rehab therapy roles, or the impact of investment in administrative and other supporting functions for home and community care.

“Given the increased demands on health care, we need to ensure we have an appropriately resourced and sustainable system. This research demonstrates that investing in home and community care is fiscally responsible and will allow more Ontarians to receive care when and where they want it, enabling more seniors to age at home where most people want to be,” added Simon.

Economic Evidence for Home and Community Care Investment: The Case for Ontario PSW Wage Parity is published in issue 19.1 of Longwood’s Healthcare Policy. Read it here.

For further information, please contact Rhiana Alfadili at OCSA at rhiana.alfadili@ocsa.on.ca.

About OCSA

Ontario Community Support Association (OCSA) represents close to 230 not-for-profit organizations that provide home care and community support services that help seniors and people with disabilities live independently in their own homes and communities for as long as possible. These compassionate and cost-effective services improve quality of life and prevent unnecessary hospitalizations, emergency room visits and premature institutionalization. They are the key to a sustainable health care system for Ontario.

For more information, visit www.ocsa.on.ca and https://twitter.com/OCSAtweets.

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OCSA Welcomes Ontario Budget Investment in Home and Community Care

By Karla Sealy • March 27, 2026

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