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Providing Aged Care: The Case for Reform

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  • Henry Ergas

Abstract

In the years ahead, the demand for aged care will polarise between community-based care and high-care facilities. The deregulation of current restrictions on the number of residential aged-care places, accompanied by the use of competitively neutral and fully portable vouchers for users of aged care, would help the sector adjust to these changes. Price regulation should be gradually reduced, contingent on the development of increased competition in the sector.

Suggested Citation

  • Henry Ergas, 2009. "Providing Aged Care: The Case for Reform," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 16(2), pages 21-44.
    • Handle: RePEc:acb:agenda:v:16:y:2009:i:2:p:21-44
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    File URL: http://press-files.anu.edu.au/downloads/press/p88441/pdf/argument01.pdf
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    1. H. Xie & T. J. Chaussalet & P. H. Millard, 2005. "A continuous time Markov model for the length of stay of elderly people in institutional long‐term care," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(1), pages 51-61, January.
    2. Darius Lakdawalla & Tomas Philipson, 2002. "The Rise in Old-Age Longevity and the Market for Long-Term Care," American Economic Review, American Economic Association, vol. 92(1), pages 295-306, March.
    3. Henry Hansmann & Daniel Kessler & Mark McClellan, 2002. "Ownership Form and Trapped Capital in the Hospital Industry," NBER Working Papers 8989, National Bureau of Economic Research, Inc.
    4. Productivity Commission, 2008. "Trends in Aged Care Services: some implications," Research Papers 0803, Productivity Commission, Government of Australia.
    5. Darius N. Lakdawalla & Robert Schoeni, 2003. "Is nursing home demand affected by the decline in age difference between spouses?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 8(10), pages 279-304.
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    1. Productivity Commission, 2009. "Annual Review of Regulatory Burdens on Business: Social and Economic Infrastructure Services," Research Reports, Productivity Commission, Government of Australia, number 35.

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