The Swedish Government is investing EUR 500 million during 2011-14 to improve health and social care for the most fragile elderly, including for strengthening incentives to councils and municipalities for achieving pre-specified goals in preventive, dementia and palliative care, better use of medication and better care co-ordination. However, Swedish data show that primary care costs per year of age increase minimally into older ages compared with inpatient costs, which may indicate under-provision for primary care relative to secondary care. An appropriate balance of resources between ambulatory care and inpatient care is important for ensuring that the primary care sector is able to manage and co-ordinate the complex care needs of people with chronic conditions and co-morbidities.