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Ownership, quality and prices of nursing homes in Australia: Why greater private sector participation did not improve performance

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  • Yong, Jongsay
  • Yang, Ou
  • Zhang, Yuting
  • Scott, Anthony

Abstract

This study examines whether greater private-sector participation in aged care can lead to better outcomes by comparing quality of care and prices of residential aged care facilities across three ownership types: government-owned, private not-for-profit and for- profit facilities. Australia, like many other countries, has been implementing market-oriented reforms aiming to promote greater consumer choice and increase the role of markets and private-sector participation in aged care.

Suggested Citation

  • Yong, Jongsay & Yang, Ou & Zhang, Yuting & Scott, Anthony, 2021. "Ownership, quality and prices of nursing homes in Australia: Why greater private sector participation did not improve performance," Health Policy, Elsevier, vol. 125(11), pages 1475-1481.
    • Handle: RePEc:eee:hepoli:v:125:y:2021:i:11:p:1475-1481
    DOI: 10.1016/j.healthpol.2021.09.005
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    References listed on IDEAS

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    1. Gaynor, Martin & Town, Robert J., 2011. "Competition in Health Care Markets," Handbook of Health Economics, in: Mark V. Pauly & Thomas G. Mcguire & Pedro P. Barros (ed.), Handbook of Health Economics, volume 2, chapter 0, pages 499-637, Elsevier.
    2. Moore, Corey B., 2021. "Consumer directed care aged care reforms in Australia since 2009: A retrospective policy analysis," Health Policy, Elsevier, vol. 125(5), pages 577-581.
    3. Noguchi, Haruko & Shimizutani, Satoshi, 2006. "Do non-profit operators provide higher quality of care? Evidence from micro-level data for Japan’s long-term care industry," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 47(1), pages 125-135, June.
    4. Hjelmar, Ulf & Bhatti, Yosef & Petersen, Ole Helby & Rostgaard, Tine & Vrangbæk, Karsten, 2018. "Public/private ownership and quality of care: Evidence from Danish nursing homes," Social Science & Medicine, Elsevier, vol. 216(C), pages 41-49.
    5. Lisa A Ronald & Margaret J McGregor & Charlene Harrington & Allyson Pollock & Joel Lexchin, 2016. "Observational Evidence of For-Profit Delivery and Inferior Nursing Home Care: When Is There Enough Evidence for Policy Change?," PLOS Medicine, Public Library of Science, vol. 13(4), pages 1-12, April.
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    7. Grabowski, David C. & Feng, Zhanlian & Hirth, Richard & Rahman, Momotazur & Mor, Vincent, 2013. "Effect of nursing home ownership on the quality of post-acute care: An instrumental variables approach," Journal of Health Economics, Elsevier, vol. 32(1), pages 12-21.
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    Cited by:

    1. Jongsay Yong & Ou Yang, 2024. "Caring for Older Patients: Quality and Efficiency of Australia's Healthcare System," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 57(2), pages 160-167, June.
    2. Cutler, Henry & Gu, Yuanyuan & Bilgrami, Anam & Partington, Andrew, 2023. "The 2021 proposal to increase market forces in the Australian residential aged-care sector," Health Policy, Elsevier, vol. 127(C), pages 60-65.

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