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Measuring Inefficiency in Long-term Care Commissioning: Evidence from English Local Authorities

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  • Francesco D'Amico
  • Jose-Luis Fernandez

Abstract

Using a stochastic frontier approach, this paper explores efficiency in the commissioning of publicly funded social services among 148 English Councils through a six-year panel database (2002-2007), covering institutional and community care. Our estimates provide key policy evidence in a context in which optimization is critical both for social and financial purposes. Results suggest a slight decrease in the average inefficiency score, moving from 1.080 in the first year to 1.076 in the last year. Cost-output elasticity of institutional care is greater than those of community care services. Greater savings are obtained when the market is open to independent providers.

Suggested Citation

  • Francesco D'Amico & Jose-Luis Fernandez, 2012. "Measuring Inefficiency in Long-term Care Commissioning: Evidence from English Local Authorities," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(2), pages 275-299.
    • Handle: RePEc:oup:apecpp:v:34:y:2012:i:2:p:275-299.
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    File URL: http://hdl.handle.net/10.1093/aepp/pps022
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    Cited by:

    1. lo Storto, Corrado, 2020. "Performance evaluation of social service provision in Italian major municipalities using Network Data Envelopment Analysis," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    2. Francesco Vidoli & Giancarlo Ferrara, 2015. "Analyzing Italian citrus sector by semi-nonparametric frontier efficiency models," Empirical Economics, Springer, vol. 49(2), pages 641-658, September.
    3. Iparraguirre, José Luis & Ma, Ruosi, 2015. "Efficiency in the provision of social care for older people. A three-stage Data Envelopment Analysis using self-reported quality of life," Socio-Economic Planning Sciences, Elsevier, vol. 49(C), pages 33-46.
    4. Rajendra Dulal, 2017. "Cost efficiency of nursing homes: do five-star quality ratings matter?," Health Care Management Science, Springer, vol. 20(3), pages 316-325, September.

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