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

Francesco D'Amico and Jose Luis Fernandez

Applied Economic Perspectives and Policy, 2012, vol. 34, issue 2, 275-299

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. Copyright 2012, Oxford University Press.

Date: 2012
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