Ageing International

, Volume 41, Issue 1, pp 17–39 | Cite as

Comparison of Nursing Home Financial Transparency and Accountability in Four Locations

  • Charlene HarringtonEmail author
  • Hugh Armstrong
  • Mark Halladay
  • Anders Kvale Havig
  • Frode F. Jacobsen
  • Martha MacDonald
  • Justin Panos
  • Kathy Pearsall
  • Allyson Pollock
  • Leslie Ross


The marketization and privatization of nursing home care has grown in many countries along with expenditures. Using documents and government reports, this study explored three research questions about nursing homes in California, Ontario, England, and Norway. What were: (1) the contextual and privatization differences; (2) payment methods and trends in revenues and expenditures for direct care, administration, and profits; and (3) the financial reporting and accountability systems? The findings showed nursing homes were highly privatized in all locations except Norway. Revenues and expenditures increased steadily in all locations. Direct care services were lower in California and England where privatization was highest. Administrative costs were high especially in for-profit companies, except in Norway’s municipal nursing homes. Profit margins were generally not reported or under reported, but high margins were found in for-profits and chains where reports were available. Contrary to the hypothesis that financial transparency and accountability would increase with privatization, only California and the U.S. had developed detailed public financial reporting, although these reports could be improved. Ontario required detailed financial reporting except for administration and profits and the information was not publicly available. England and Norway had no public systems for financial reporting. None of the locations had cost controls on administration and profits, except for Medicaid administration controls in California. Policy makers need to focus on improvements in financial transparency and accountability to assure value for expenditures and to potentially improve quality.


Ownership Accountability Financing Transparency 



This research was supported by the Social Sciences and Humanities Research Council of Canada as part of a Major Collaborative Research Initiative, Pat Armstrong, York University Principal Investigator.

Compliance with Ethical Standards

Conflict of Interest

The authors declare no conflict of interest.

Informed Consent

As there is no person or personal data appearing in the paper, there is no one from whom a permission should be obtained in order to publish personal data.

Ethical Treatment of Experimental Subjects (Animal and Human)

This article does not contain any studies with human or animal subjects performed by any of the authors.


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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Charlene Harrington
    • 1
    Email author
  • Hugh Armstrong
    • 2
  • Mark Halladay
    • 1
    • 3
  • Anders Kvale Havig
    • 4
  • Frode F. Jacobsen
    • 5
  • Martha MacDonald
    • 6
  • Justin Panos
    • 7
  • Kathy Pearsall
    • 8
  • Allyson Pollock
    • 9
  • Leslie Ross
    • 10
  1. 1.Department of Social & Behavioral SciencesUniversity of CaliforniaSan FranciscoUSA
  2. 2.Professor Emeritus of Social Work, Political Economy, and SociologyCarleton UniversityOttawaCanada
  3. 3.School of Health and Human SciencesUniversity of EssexColchesterUK
  4. 4.Center for Care ResearchGjøvik University CollegeGjovikNorway
  5. 5.Center for Care ResearchBergen University CollegeBergenNorway
  6. 6.Economics DepartmentSaint Mary’s UniversityHalifaxCanada
  7. 7.Programme in Social and Political ThoughtYork UniversityTorontoCanada
  8. 8.Concerned Friends of Ontario Citizens in Care FacilitiesTorontoCanada
  9. 9.Queen Mary, University of LondonLondonUK
  10. 10.Institute for Health and AgingUniversity of CaliforniaSan FranciscoUSA

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