Facoltà di scienze economiche

Regulation, ownership and efficiency in the Swiss nursing home industry

Crivelli, Luca ; Filippini, Massimo ; Lunati, Diego

Switzerland is a federal State where policy decisions and implementation regarding long-term care regulation are by rights incumbent to the regional and local governments (Canton and Town Council). This situation is in part responsible for the large number of small nursing homes operating in Switzerland. Moreover, long-term care for the elderly is supplied by private for-profit nursing homes,... Plus

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    Summary
    Switzerland is a federal State where policy decisions and implementation regarding long-term care regulation are by rights incumbent to the regional and local governments (Canton and Town Council). This situation is in part responsible for the large number of small nursing homes operating in Switzerland. Moreover, long-term care for the elderly is supplied by private for-profit nursing homes, public nursing homes and non-profit nursing homes, respectively. The mixed economy which characterizes the long-term care market raises the interesting issue of the effects that the different regulatory settings and institutional forms can have on costs. The paper will consider an econometric estimation of a stochastic cost frontier using cross-section data for a sample of 835 Swiss nursing homes for elderly people operating in 1998. The results of this analysis are used to examine the relationship between cost efficiency and the alternative institutional and regulation forms.