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
Additional contact information
Ferran Espuny Pujol: Clinical Operational Research Unit, University College London
Ruth Hancock: Health Economics Group, University of East Anglia

No 2019-09, Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK.

Abstract: We investigate the impact of exogenous local conditions which favour 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) introducing a new econometric approach based on reduced form relationships that treats market concentration as a jointly-determined outcome of a complex contested 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 favouring high market concentration affect average care home quality.

Keywords: Care homes; market concentration; price; supply; quality. (search for similar items in EconPapers)
JEL-codes: H75 I11 L22 (search for similar items in EconPapers)
Date: 2019-10-23
New Economics Papers: this item is included in nep-com, nep-hea and nep-ure
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: 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 (2021)
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:uea:ueaccp:2019_09

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