Mathew Puthenparambil, Jiby
University of Jyvaskyla, Finland
Finland is often termed as a welfare state with an universal tax-funded care services system. However, economic setback in early 1990s has brought significant changes in welfare reforms, particularly in the care service for older people. Most prominent changes are the introduction of market like mechanism such as outsourcing of care services, purchase-provider model, tax rebate for domestic help and service voucher system in the care provision. Though, municipalities are solely responsible for whether or not to use market like mechanism in their locality. Presently, several municipalities have outsourced some of their ‘care’ responsibilities to the private sector, while others stayed in the traditionally practiced self-produced care system. In this context, this article tries to examine to what extent does characteristics of municipality determine the use of private home-care service and shelter housing for older people? How much local variation exists in the use of private home-care and shelter housing services? To answer these questions we used data from the SOTKAnet Indicator Bank, which is an information service provided by the National Institute for Health and Welfare (THL). Preliminary findings reveals that the use of service purchased from the private sector by the municipalities are entirely depend upon on the economic situation and the degree of urbanization. There is a steep increase in the number of home-care and shelter housing services purchased from the private sector in the past years. The trend shows that those municipalities already engaged in the public-private partnership are more likely intensifying their purchase from the private sector.