Western social setup is good for local economy?

No no, these are not the result of the way the health industry operates. This isnt the case of any single country. Many countries in the modern world have this problem, you cant blame health industry everywhere.

You generally do not need robots and sensors in societies where elderly people live with their children, because they arent left alone long enough.

Something directly linked with dementia is social isolation. One of the things the state here pays for is community matrons, that go about to some 50-60 elderly people, asking them how they are. All of these are quite costly.

Well Im not prescribing solutions. You started the thread off by describing an economic picture where families not living in the same home for generations boosted spending and spurred growth. Which is a fair point. All Im saying is that there is an economic cost to this behavior too.