Physiotherapy market development, concentration and acquisitions (Kilpa3)

The research project is divided into three sub-studies examining the development and concentration of the physiotherapy market and Kela's physiotherapy acquisitions.

The first part of the study examines the general development of the physiotherapy market and provides an overview of the industry. The aim is to look at market concentration and competition, and the cost of physiotherapy.

The therapy market is undergoing a process of market concentration in the form of mergers and acquisitions by large national companies. The second part of the study aims to examine how market concentration has affected the price, quality, and availability of services.

Kela has intensified its procurement procedure in recent acquisitions, and this has increased price competition, especially between providers. However, it takes time for providers to learn the big changes in the acquisition process. The third sub-study examines how quickly providers learn about changes in procurement practices and how this is reflected in their pricing and quality investments.

The main data used for the study are the comparison tables of physiotherapy acquisitions in the field of demanding medical rehabilitation organised by Kela. The data are analysed using descriptive statistical and modern econometric methods (difference-in-differences and discontinuity methods).

Researchers

• Hennamari Mikkola, vastuututkija
• Sara Kuhmonen
• Signe Jauhiainen
• Mikko Nurminen

Project steering group: Mikko Toivanen, Hannamaija Haiminen, Tanja Avelin, Tuomas Reiterä, Seija Sukula.

Project duration

1.1.2024–31.12.2025