Governance and finance of long-term care - University of Birmingham
Governance and finance of long-term care - University of Birmingham
Governance and finance of long-term care - University of Birmingham
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Allen et al., 2011 <strong>Governance</strong> <strong>and</strong> Financing <strong>of</strong> LTC | European Overview<br />
3.5 The role <strong>of</strong> different stakeholders <strong>and</strong> welfare regimes<br />
An additional factor that contributes to the fragmentation <strong>of</strong> LTC systems is the increasing number <strong>of</strong><br />
stakeholders involved in service delivery. While in central European countries the role <strong>of</strong> private non-‐<br />
pr<strong>of</strong>it organisations as providers <strong>of</strong> <strong>care</strong> has a <strong>long</strong> tradition, private for-‐pr<strong>of</strong>it organisations are on the<br />
rise everywhere. This development includes the Nordic countries where, however, a majority <strong>of</strong> services<br />
are still publicly provided. Table 3.7 shows an overview <strong>of</strong> the specific ‘welfare mixes’ in the provision <strong>of</strong><br />
services in <strong>term</strong>s <strong>of</strong> market-‐shares <strong>of</strong> public, private non-‐pr<strong>of</strong>it <strong>and</strong> private for-‐pr<strong>of</strong>it providers. It should<br />
be underlined that the emergence <strong>of</strong> private for-‐pr<strong>of</strong>it providers has been a phenomenon <strong>of</strong> the past 20<br />
years only. However, the type <strong>of</strong> privatization depends a lot on the regulatory framework. While, for<br />
instance, the <strong>care</strong> home sector in the UK has become an ‘LTC industry’ with the usual market-‐<br />
mechanisms <strong>of</strong> mergers <strong>and</strong> acquisitions <strong>of</strong> large investment firms, the German for-‐pr<strong>of</strong>it home <strong>care</strong><br />
agencies are to a large extent small enterprises with 5 to 10 employees.<br />
Table 3.7 Different welfare mixes in the provision <strong>of</strong> LTC services (estimated market shares <strong>of</strong><br />
different providers by type <strong>of</strong> service in percent, around 2010)<br />
Country Public providers Private non-‐pr<strong>of</strong>it providers Private for-‐pr<strong>of</strong>it providers<br />
Residential Home <strong>care</strong> Residential Home <strong>care</strong> Residential Home <strong>care</strong><br />
CH (1) 30% 30% 40%<br />
DK<br />
DE 5% 2% 55% 37% 40% 62%<br />
EL n/a<br />
ES (1) (2) 23% 24% 53%<br />
FR 23% 15% 55% 65% 22% 20%<br />
IT (1) 30% 50% 20%<br />
NL (1) -‐ 80% 20%<br />
AT 55% 8% 24% 91% 21% 1%<br />
SK (1) 75% 23% 2%<br />
FI 56% 93% -‐ -‐ 44% 7%<br />
SE 75% 84% 10% -‐ 15% 16%<br />
UK 7% 14% 13% 11% 80% 75%<br />
Sources: Huber et al. 2008; Leichsenring et al. 2011; IMSERSO (ES); Statistisches Bundesamt (DE); Office fédéral de<br />
la statistique (CH); National reports. Notes: (1) only aggregate data for residential <strong>and</strong> home <strong>care</strong> available; (2) No<br />
clear distinction can be made between private providers in Spain – in this table non-‐pr<strong>of</strong>it providers thus include<br />
all those with a formal contract with the Autonomous Communities; private for-‐pr<strong>of</strong>it providers include those with<br />
an authorization only, i.e. all costs have to be covered by the individual resident.<br />
Table 3.8 synthesizes the above data in relation to the provider mix in the selected countries by<br />
outlining the share <strong>of</strong> services provided by the public, non-‐pr<strong>of</strong>it <strong>and</strong> private sectors, as well as the<br />
informal <strong>care</strong> contribution to LTC. The information given does not reflect the level <strong>of</strong> provision in each<br />
country, i.e. whether services meet LTC needs/dem<strong>and</strong>, rather it aims to demonstrate who is providing<br />
LTC in each country. However, this data should be interpreted with the caveat that different countries<br />
may define different stakeholders in different ways. As one example, participating countries have <strong>of</strong>ten<br />
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