Market concentration, supply, quality and prices paid by local authorities in the English care home market

Ferran Espuny Pujol, Ruth Hancock, Morten Hviid, Marcello Morciano and Stephen Pudney

Health Economics, 2021, vol. 30, issue 8, 1886-1909

Abstract: We investigate the impact of exogenous local conditions which favor high market concentration on supply, price and quality in local markets for care homes for older people in England. We extend the existing literature in: (i) considering supply capacity as a market outcome alongside price and quality; (ii) taking account of the chain structure of care home supply and differences between the nursing home and residential care home sectors; (iii) using an econometric approach based on reduced form relationships that treats market concentration as a jointly determined outcome of a complex market. We find that areas susceptible to a high degree of market concentration tend to have greatly restricted supply of care home places and (to a lesser extent) a higher average public cost, than areas susceptible to low degree of market concentration. There is no significant evidence that conditions favoring high market concentration affect average care home quality.

Date: 2021
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https://doi.org/10.1002/hec.4286

Related works:
Working Paper: Market concentration, supply, quality and prices paid by local authorities in the English care home market (2021)
Working Paper: Market concentration, supply, quality and prices paid by local authorities in the English care home market (2019)
Working Paper: Market concentration, supply, quality and prices paid by Local Authorities in the English care home market (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:hlthec:v:30:y:2021:i:8:p:1886-1909

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