Quasi-markets targets and the evaluation of nursing-home funding in the Valencian Region

In this paper we study the public financing system related to one basic social service: the nursing home, with special regard to the Valencia Region. In this region, funding for nursing homes is extremely complex: public subsidies, accessibility plans, a voucher scheme and a cash benefit approach. We analyze each funding method from the viewpoint of quasi-market theory. We find that these approaches have a negative impact on equity, efficiency and freedom of choice. Therefore, we propose a new, homogeneous financing method for all nursing homes, which also takes into consideration the level of dependency of older people in care.