Nursing Home Competition, Prices and Quality: A Review and Some Lessons for Australia

Ou Yang, Jongsay Yong, Anthony Scott

Melbourne Institute of Applied Economic and Social Research | Published : 2020


In recent years, with the aim of containing cost pressure and improving efficiency, many countries have begun to introduce market mechanisms into the aged care sector. Under the right conditions, competition can spur providers to compete by cutting costs, offering better prices and higher quality of services. However, in aged care, market failures can be severe. Information about prices and quality may not be readily available and search costs can be high. This study undertakes a scoping review of the literature on competition in the nursing home sector, with an emphasis on research examining how competition affects prices and quality of care. Online databases were used to identify studies i..

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