The nursing home case-mix classification system, Resource Utilization Group
s Version III (RUG-III), has been tested and refined for long-term home car
e clients. The study sample included 804 individuals seeking home care thro
ugh the Michigan Care Management Program or the Home and Community Based Wa
iver for the Elderly and Disabled. Clients were classified, and RUG-III mod
els were derived using the Minimum Data Set for Home Care (MDS-HC). A refin
ed home care model, RUG-III/HC, was developed incorporating Instrumental Ac
tivities of Daily Living (IADLs) to the nursing home RUG-III classification
. The model explained 33.7 per cent of the variance of per diem cost, using
cost weighted formal and informal care as the dependent variable. Resource
use within groups was relatively homogeneous. The case-mix index (CMI) of
weighted formal and informal care time spanned an eight-fold range. Further
analysis is suggested regarding the inclusion of informal care as a cost i
n case-mix classification for long-term home care clients.