This study examines total formal and informal care costs attributable
to Alzheimer's disease for persons living in the community and in inst
itutions. The total cost of caring for an Alzheimer's patient in north
ern California is approximately $47,000 per year whether the patient l
ives at home or in a nursing home, but the cost breakdown differs in t
he two settings. For community-resident patients, three-fourths of the
total cost represents an imputed value for unpaid informal care compa
red with 12 percent for institutionalized patients. Formal services ar
e financed primarily by individuals and their families. Over 60 percen
t of the services provided to patients in either care setting were pai
d out of pocket. With projected increases in the number of persons at
risk of developing Alzheimer's disease, the economic impact of the dis
ease on future long-term care costs will be significant.