What Legal Status and Which Missions for Nursing Homes with a Human Face?

This article analyses the causes and potential remedies for the abuse recently uncovered in the nursing home sector (EHPADs) in France. It starts with the Dewatripont-Tirole (2023) model, which analyzes the general connection between the market structure and the « ethical nature » of the actions taken by the businesses that are part of this market, and then draws conclusions specific to the nursing home sector. The model indicates that, although the profit motive is not the only problem facing this sector, in a market where consumers/residents find it difficult to evaluate the quality of service and where the regulator has shown its own limitations, curbing the extent of profit-seeking clearly seems advisable. After having briefly discussed the empirical evidence on the performance of this sector on an international level, the article assesses the pros and cons of various avenues for improving its functioning: public-sector control, « mission-driven companies », and tighter regulation.