The price of placements in residential and nursing home care: The effects of contracts and competition

Forder, Julien E. and Netten, Ann (2000) The price of placements in residential and nursing home care: The effects of contracts and competition. Health Economics, 9 (7). pp. 643-657. ISSN 1057-9230. (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

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A variety of contract types are used in the placement of elderly people in residential and nursing care homes in the UK. Contracts vary according to how and when providers are paid. Among other things, prices can be made contingent on the total quantity of service to be purchased and on production cost characteristics. They can be determined at the time of placement or in advance. The primary objective of this paper is to assess the impact of contract choices on the price of placements. Regression analysis was conducted on a final sample of 1780 publicly funded placements made in 18 local authorities in the UK over a 6-month period ending in early 1996. Controlling factors included in the price analysis were production cost indicators and those measuring market competitiveness. Choices of both quantity and cost contingent contracts were found to be significantly associated with placement prices. The findings support the hypothesis that contract payment arrangements have different risk, insurance and information properties, and so have implications for the performance of residential care providers.

Item Type: Article
Uncontrolled keywords: competition; contracts; nursing homes; pricing; residential care
Subjects: H Social Sciences
H Social Sciences > HM Sociology
Divisions: Faculties > Social Sciences > School of Social Policy Sociology and Social Research
Depositing User: O.O. Odanye
Date Deposited: 19 May 2009 18:15
Last Modified: 25 Apr 2014 08:09
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