Outsourcing care homes compromises quality in deprived areas, research finds

OXFORD, UNITED KINGDOM — A recent study by the University of Oxford revealed that outsourcing care to private companies has compromised the quality of care, particularly in the most deprived areas.
The research, funded by the Nuffield Foundation, highlights the challenges faced by public and third-sector care providers in maintaining operations despite offering superior care quality in these regions.
Public and third-sector homes face closure risks
The study analyzed 2011-2023 data from 29,548 care homes and 8,346 closures, finding that public and third-sector homes, often rated as providing good quality care, are more likely to close than their for-profit counterparts.
These homes are nearly twice as likely to shut down compared to private providers, even when rated similarly by the Care Quality Commission (CQC).
Dr. Anders Bach-Mortensen, the lead author and associate professor at Roskilde University, stated, “Good third sector and local authority homes are closing, especially in the poorest areas of the country. This is problematic because for-profit care homes do not consistently provide high-quality care in deprived areas, which raises serious questions about whether outsourcing care services has inadvertently compromised the equity and accessibility of care for vulnerable people.”
Competitive environment fails to prioritize quality
The findings suggest that the competitive environment fostered by outsourcing does not prioritize quality or equity in care provision.
Dr. Benjamin Goodair, a co-author of the study, emphasized that the current system fails to support the survival of the best care homes, particularly in economically disadvantaged areas.
“The data suggest that the competitive environment created by outsourcing does not prioritize quality or equity in care provision,” Dr. Goodair noted.
Balancing efficiency and quality in care provision
While the study highlights significant challenges, outsourcing has the potential to bring benefits.
Outsourcing in the healthcare sector has been shown to improve efficiency and access to specialized services. For instance, outsourcing certain clinical roles like medical transcription and billing can free up in-house staff to focus on clinical care, enhancing patient outcomes.
Moreover, outsourcing can provide access to global best practices and innovative care models, such as telehealth services, that bridge geographical gaps and ensure timely access to medical expertise.
Implications for policy and practice
The research calls for a reassessment of current outsourcing policies to ensure that vulnerable populations continue to have access to high-quality care.
The study underscores the need for a more equitable distribution of resources and support for public and third-sector providers, especially in deprived areas where their presence is crucial.
The closure of high-quality public and third-sector homes raises concerns about the future of care provision in England.
With the for-profit sector expanding and often prioritizing financial viability over care quality, the study highlights the urgent need for policy interventions to address these disparities and ensure that all residents receive the care they need, regardless of their location or economic status.