Display options
Share it on

Health Serv Insights. 2017 Jun 08;10:1178632917710533. doi: 10.1177/1178632917710533. eCollection 2017.

Marketization in Long-Term Care: A Cross-Country Comparison of Large For-Profit Nursing Home Chains.

Health services insights

Charlene Harrington, Frode F Jacobsen, Justin Panos, Allyson Pollock, Shailen Sutaria, Marta Szebehely

Affiliations

  1. Department of Social & Behavioral Sciences, University of California, San Francisco, San Francisco, CA, USA.
  2. Center for Care Research, Western Norway University of Applied Sciences, Bergen, Norway.
  3. Graduate Program in Social and Political Thought, York University, Toronto, ON, Canada.
  4. Institute of Health & Society, Faculty of Medical Sciences, Newcastle University, Newcastle upon Tyne, UK.
  5. Centre for Primary Care and Public Health, Queen Mary University of London, London, UK.
  6. Department of Social Work, Stockholm University, Stockholm, Sweden.

PMID: 28634428 PMCID: PMC5467918 DOI: 10.1177/1178632917710533

Abstract

This article presents cross-country comparisons of trends in for-profit nursing home chains in Canada, Norway, Sweden, United Kingdom, and the United States. Using public and private industry reports, the study describes ownership, corporate strategies, costs, and quality of the 5 largest for-profit chains in each country. The findings show that large for-profit nursing home chains are increasingly owned by private equity investors, have had many ownership changes over time, and have complex organizational structures. Large for-profit nursing home chains increasingly dominate the market and their strategies include the separation of property from operations, diversification, the expansion to many locations, and the use of tax havens. Generally, the chains have large revenues with high profit margins with some documented quality problems. The lack of adequate public information about the ownership, costs, and quality of services provided by nursing home chains is problematic in all the countries. The marketization of nursing home care poses new challenges to governments in collecting and reporting information to control costs as well as to ensure quality and public accountability.

Keywords: Ownership; accountability; cost; profitability; quality

Conflict of interest statement

DECLARATION OF CONFLICTING INTERESTS: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article. Disclosures and Ethics The

References

  1. PLoS Med. 2016 Apr 19;13(4):e1001995 - PubMed
  2. Med Care. 2003 Dec;41(12):1318-30 - PubMed
  3. Health Aff (Millwood). 2008 Sep-Oct;27(5):1399-408 - PubMed
  4. J Health Polit Policy Law. 2014 Aug;39(4):781-809 - PubMed
  5. Int J Health Serv. 2015;45(4):779-800 - PubMed
  6. BMJ. 2009 Aug 04;339:b2732 - PubMed
  7. Lancet. 1998 Jun 13;351(9118):1805-8 - PubMed
  8. Health Serv Insights. 2016 Apr 12;9:13-9 - PubMed
  9. Open Med. 2011;5(4):e183-92 - PubMed
  10. Med Care Res Rev. 2005 Apr;62(2):139-66 - PubMed
  11. J Aging Soc Policy. 2013;25(1):30-47 - PubMed
  12. Health Care Manage Rev. 2013 Jul-Sep;38(3):224-33 - PubMed
  13. J Aging Soc Policy. 2000;12(1):35-48 - PubMed
  14. J Health Soc Behav. 2004;45 Suppl:87-101 - PubMed
  15. J Health Econ. 2013 Jan;32(1):12-21 - PubMed
  16. Can J Aging. 2016 Jun;35(2):175-89 - PubMed
  17. Health Serv Res. 2012 Feb;47(1 Pt 1):106-28 - PubMed
  18. Int J Health Serv. 2011;41(4):725-46 - PubMed
  19. Health Aff (Millwood). 2016 May 1;35(5):907-14 - PubMed

Publication Types