The impact of competition on quality and prices in the English care homes market

Forder, Julien E.; Allan, Stephen

doi:10.1016/j.jhealeco.2013.11.010

Cited by 80 publications

(88 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Forder and Allan () studied the effect of competition on quality in the English nursing home market. Their analysis is closest to our empirical analysis because both markets have a vast amount of rather small, privately run producers and quality is scored via a regulator.…”

Section: Theoretical Background On Competitionmentioning

confidence: 99%

“…Endogeneity can account for significant bias in our results, and therefore, we needed to add instrumental variables that would explain quality and prices only through potentially endogenous variables to the analyses. In line with Forder and Allan (), all of the instruments used in the analyses are variables aggregated at the insurance district level, while municipal‐level versions of the variables were added to the analyses as exogenous variables. In this way, all impacts resulting from the need for quality will be felt at the lower level, and any remaining effect will be felt at the higher aggregated level.…”

Section: Datamentioning

confidence: 99%

See 1 more Smart Citation

Does Competition Have an Effect on Price and Quality in Physiotherapy?

2016

View full text Add to dashboard Cite

We estimate the effect of competition on quality and prices in physiotherapy organised and financed by the Social Insurance Institution of Finland for disabled individuals. Within the physiotherapy market, firms participate in competitive bidding, prices are determined by the market, services are free at the point of use and firms are allowed to react to patient choice only by enhancing quality. Firm-level data (n = 854) regarding quality and price were analysed. Using 2SLS estimation techniques, we analysed the relationship between quality and competition, and price and competition. Our study found that competition has a negative (yet weak) effect on quality. Prices on the other hand are not affected by competition. The result is likely caused by imperfect information, because it seems that the Social Insurance Institution of Finland has provided too little information for patients to make adequate choices about proper service providers. We argue that by publishing quality information, it is possible to ease the decision-making of patients and influence the quality strategies of firms active in the physiotherapy market. Moreover, we found that competition appeared as an exogenous variable in this study. Copyright © 2016 John Wiley & Sons, Ltd.

show abstract

Section: Theoretical Background On Competitionmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

Does Competition Have an Effect on Price and Quality in Physiotherapy?

2016

View full text Add to dashboard Cite

show abstract

“…Furthermore, quasi-markets have been considered by governments as an alternative of public services financing, hoping to reduce public expenditure and prices among nursing-homes, and to achieve better quality and equity (Kähkönen, 2004;Hansen, 2010). Until now, many experts have focused their studies on these topics but without finding clear effects (Forder and Allan, 2011;Forder and Allan, 2014;Rostgaard and Szebehely, 2012;Meagher and Szebehely, 2013). Spain is also introducing some elements of competition in social services for elderly people.…”

Section: Amadeo Fuenmayor Rafael Granell and María áNgeles Tortosamentioning

confidence: 99%

Quasi-markets Targets and the Evaluation of Nursing-home Funding in the Valencian Region

Fernández¹,

Pérez²,

Chuliá³

2016

HPE-RPE

View full text Add to dashboard Cite

Spanish long term care is in danger, therefore we propose a change in the nursing home funding system. We use as an example the extremely complex nursing home financing system of Valencian Region. In this region, there are many funding mechanisms: two types of public subsidies, two different accessibility plans, a voucher scheme and a cash benefit approach related to residential service. We evaluate these methods through the quasi-market theory. We find that these approaches have negative impact on equity, efficiency and freedom of choice and we propose a new, homogeneous financing method for all nursing homes through voucher.

show abstract

“…For instance, in Germany, it increased from 8.6% of total health care expenditure in 1997 to 11.2% in 2013 (Augurzky et al, 2013). While prices and quality vary substantially across nursing homes (see, e.g., Mennicken, 2013), they may also be interdependent (Forder and Allan, 2014). On the one hand, higher prices may facilitate higher quality.…”

Section: Introductionmentioning

confidence: 99%

“…They find that competition reduces prices which pushes down quality in English nursing homes (Forder and Allan, 2014).…”

Section: Introductionmentioning

confidence: 99%

Higher prices, higher quality? Evidence from German nursing homes

Herr

Hottenrott

2016

Health Policy

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in January 2016Abstract Objectives: This study investigates the relationship between prices and quality of 7,400 German nursing homes controlling for income, nursing home density, demographics, labour market characteristics, and infrastructure at the regional level.Method: We use a cross section of public quality reports for all German nursing homes, which had been evaluated between 2010 and 2013 by external institutions. Our analysis is based on multivariate regressions in a two stage least squares framework, where we instrument prices to explain their effect on quality.Results: Descriptive analysis shows that prices and quality do not only vary across nursing homes, but also across counties and federal states and that quality and prices correlate positively. Second, the econometric analysis, which accounts for the endogenous relation between negotiated price and reported quality, shows that quality indeed positively depends on prices. In addition, more places in nursing

show abstract

The impact of competition on quality and prices in the English care homes market

Cited by 80 publications

References 17 publications

Does Competition Have an Effect on Price and Quality in Physiotherapy?

Does Competition Have an Effect on Price and Quality in Physiotherapy?

Quasi-markets Targets and the Evaluation of Nursing-home Funding in the Valencian Region

Higher prices, higher quality? Evidence from German nursing homes

Contact Info

Product

Resources

About