Alzheimer's disease care: costs and potential savings.

A cross-sectional study of 679 Alzheimer's disease patients from thirteen sites in nine states provides a unique opportunity to estimate costs of Alzheimer's disease care by disease stage and care setting and to explore potential areas of cost savings. In 1996 annual costs of caring for patients with mild, moderate, and severe Alzheimer's disease were $18,408, $30,096, and $36,132, respectively. Monthly savings of $2,029 in formal services are possible if disease progression can be slowed. Annual institutional cost savings of $9,132 also are achievable if alternative residential settings are used.