Neoliberalism and health care: the case of the Irish nursing home sector

Abstract

The usefulness of neoliberalism as a theoretical concept in health research has been debated. This paper argues that when the concept of neoliberalism is used precisely and concretely, it provides an important and valid framework to analyse how health systems have been transformed over the last several decades. This claim is illustrated through the case of the Irish nursing home sector, which, over the last 20 years, has been turned upside down: from a mostly public system, it has been restructured into a mostly private, for-profit one. Privatisation, a quintessential neoliberal outcome, is analysed in detail. It was fostered by several neoliberal policies and has benefitted Irish (and to some extent global) economic elites. Tax incentives for private home operators and government budgetary constraints have limited state involvement in service provision and supported the expansion of the private sector. Private home staff are subject to more ‘flexible’ working conditions, which benefits employers. Moreover, the government plans to build new public nursing homes via public–private partnerships, which amount to privatisation. Also, global nursing home chains have begun to enter the Irish market, which offers profitable opportunities to international investors. However, international research shows that quality of care tends to be lower in private homes, due to cost cutting to increase profits.

Keywords:

• Privatisation
• health systems
• neoliberalism
• nursing homes
• political economy