Office of Fair Trading
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OFT evaluation finds improvements in information provided to care home residents

The OFT has today published an independent evaluation of its 2005 market study into care homes for older people which finds there have been improvements in the provision of information to consumers.

The research, carried out by GHK Consulting and based on engagement with residents, a survey of care homes, a mystery shopping exercise, and a survey of local authorities, found that:

  • 94 per cent of care homes say they provide residents with a contract or statement of terms and conditions, compared to 82 per cent six years ago
  • 90 per cent of mystery shopper callers were able to obtain information on fee levels, and 79 per cent of care homes surveyed now report that they provide detailed price lists to prospective residents 
  • following an OFT recommendation to establish a 'one stop shop' for information, the First Stop Care Advice service was set up which, alongside the Care Information website and helpline in Scotland, has seen high rates of satisfaction.

Overall, GHK estimates the quantifiable benefits to consumers from the market study to be in the region of £6-10 million per year, with further evidence of other, non-quantifiable, benefits including on information provided to consumers. 

However, there is room for improvement with only 60 per cent of care homes providing information to residents on complaints procedures. The evaluation also highlights the need to increase consumer awareness of relevant information, such as inspection reports, contracts and other sources of information when deciding on a care home.

Amelia Fletcher, OFT Chief Economist said:

'Our evidence points to general improvements, following our study, in the provision of information to residents or family members making a decision to choose a particular care home. With increasing rates of disability and dependence amongst care home residents, it is more important than ever that information is both clear and provided upfront. We look forward to discussing our findings with providers, regulators and other groups to ensure that further improvements are made.'

Download the report Evaluating the impact of the 2005 OFT study into care homes for older people (pdf 2.72Mb) and annexes pdf 560 kb).

NOTES

  1. The estimated benefits to consumers of £6-10 million was based on a conservative estimate of just one of the range of benefits arising from the OFT's market study. See 1.39-1.42 of the executive summary of the Evaluation report.
  2. In 2005 the OFT carried out a market study into care homes which recommended one-stop-shop for information on care home provision supported by better access to complaints procedures, greater price transparency and fairer contract terms for care home residents. See press release OFT calls for better care homes information (May 2005).
  3. The OFT's evaluation programme aims to evaluate whether the OFT delivers its objectives cost-effectively, and to help the OFT prioritise, conduct, and follow up its work to maximise its impact. See Evaluations in progress.




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