Care sector 'mixed economy' reform needs to begin at a local level

Care service users need to be better informed on the care options available to them, according to a joint report from Anchor and the Strategic Society Centre.

Care home provider Anchor joined forces with the public policy think-tank in order to conduct an exploration of how local care markets determine the price of care.

The report defines social care as a ‘mixed economy’ driven by local issues, which needs to be interpreted in a fluid manner in order to succeed.

‘Right Care, Right Price’, which is published today, identifies three key issues the care sector faces in achieving fair budget-planning for care provision, these are: local authority monopsony power; the relationship between price and quality; and price discrimination and excess quality premiums.

While affecting the fairness of pricing, these issues are also found by the report to be confusing the public, as well as impacting upon the potential success of long-term funding reform.

Highlighting some of the complexities that service users face, the report states: ‘A key factor that may contribute to public ignorance of the price of care is variation in prices for different types of care, at different times of the year, and among different geographical areas.

‘There is no standard price of care for any individual care home, and prices may fluctuate and vary widely. As such, although organisations may undertake periodic market surveys to establish the price of care in different local areas, the price of care is actually a moving “spot price” that reflects particular conditions and factors at a particular time.’

Researchers advise the Government that in order for care reforms to work five key actions need to be taken: these are; to ensure financial sustainability among care providers that is coherent with investment and quality; to strengthen the link between prices and quality; to boost the public’s knowledge of care prices in their area; to improve consumer knowledge among families paying for care; and to improve public knowledge of local authority commissioning.

Anchor’s chief executive Jane Ashcroft comments: “We risk an oblivious ageing population sleepwalking into an uncertain future. In response to this report, we have reignited our call for Government to stop dragging its heels and do more to prepare for demographic change – only by making one person accountable for our evolving needs can we protect older people living in the UK today as well as future generations.”