Approximately one-third of the homes are private businesses. The others are operated by charities and volunteers .All homes must be licensed and audited by the Ministry of Health. In the case of the voluntary welfare organisations (VWOs), the Government contributes 90% to building and
capital costs and there after covers 50% of the current expenditure. Private donations are tax exempt. The Government waives the foreign worker levy in recognition of the difficulty of recruiting auxiliaries and even nurses. It provides a three-tier subsidy per patient of 25%, 50% or 75%: the per cent age is means-tested. There is
currently no subsidy if the household’s monthly income exceeds S$1000 per capita or if there is total family savings of more than S$30,000. About 91.5% of patients in VWO homes are eligible for the subsidy .A typical patient at tending a rehabilitation centre on a daily basis might pay S$580 a month: with 75% subsidy, that means a co-payment of $145, waived in case of extreme need. In the future the Government can re lease State land on con cessionary terms
similar to those offered to the Housing Development Board for (public sector) residential construction. The Government in 2000 set up the Elder Care Fund to generate the requisite VWO payments out of interest accruing to its endowment rather than through an increase in tax. It is intended that the Fund will stand at $2.5 bn. By 2010