Study on social responses supports Regional Government’s priorities - Communication

Secretaria Regional da Saúde e Segurança Social

The Regional Secretary for Health and Social Security stated today that the study on the true cost of social services reinforces the Azorean Government’s strategy of focusing investment on the protection of children, young people and the elderly, ensuring appropriate responses to the needs of families and the challenges of an ageing population.

“The results of this study underline the importance of the approach we have been following in the area of social solidarity, prioritising investment in children, young people and the elderly. Our policy has been clear: directing resources towards the protection of the most vulnerable, ensuring social services that meet the needs of families and address the challenges of an ageing population,” stated Mónica Seidi, Regional Secretary for Health and Social Security.

Commissioned by the Institute for Social Security of the Azores (ISSA) and carried out by Norma-Açores, the study was based on a sample of 111 institutions spread across the nine islands. It analysed economic and financial data for 2024 and 2025, as well as the funding mechanisms, the applicable legislation and the main factors influencing the costs of the various social services.

Among the main findings, the report established that actual average costs exceed the Standard Value and the ISSA contributions, with the highest average costs being recorded for residential care or care-intensive services, such as foster homes, residential facilities for the elderly, care homes and night centres.

For the government, the results provide a deeper understanding of the costs associated with different types of care. They form a technical basis for implementing changes to the social care funding model, with a view to ensuring greater predictability for institutions and a response tailored to the specific characteristics of the Region.

“This study enables us to understand, based on rigorous technical information, that changes need to be implemented in the social care funding model. Our main goal is that, from 2027 onwards, we will have a defined model that guarantees greater predictability for institutions and considers the specific characteristics of the Autonomous Region of the Azores,” stated Mónica Seidi.

Among the study’s recommendations are the periodic assessment of the actual costs of social services, the increased use of the SIADS platform, and the standardisation of cost allocation rules, to provide a more accurate calculation of the costs associated with each service.

The report also recommends the drafting of a manual of cost accounting procedures, which can serve as a guiding tool for institutions, and the creation of a Regional Training Programme for the Management of Private Social Solidarity Institutions (IPSS), aimed at improving the skills of managers, administrative staff and workers.

“There are measures we must begin to implement straight away, particularly in terms of organising accounts by cost centres, creating support mechanisms for institutions and upskilling their staff. These are essential steps to ensure that, in the future, we can guarantee a more accurate and automatic updating of funding figures. We are not creating further difficulties; rather, we are improving all the work that is already being carried out,” stated the Regional Secretary.

Mónica Seidi also emphasised that the implementation of these guidelines should result from joint efforts involving the Government of the Azores, the National Government, the Institute for Social Security of the Azores and the sector’s representative bodies, namely the Regional Union of Private Social Solidarity Institutions of the Azores (URIPSSA) and the Regional Union of Misericórdias of the Azores (URMA).

The Regional Secretary also acknowledged the role played by Private Social Solidarity Institutions (IPSS) and the Misericórdias in addressing the social needs of the population, emphasising that the sustainability of these institutions requires ongoing dialogue, a thorough understanding of the situation on the ground, and solutions tailored to the specific characteristics of the various social services available on each island.