Prices and Markets in Kela’s Rehabilitation Registration Procedure
Kela organises various rehabilitation services procured from private rehabilitation companies. A majority of the services are procured through public competitive tenders, where the service providers are evaluated on either price or a combination of price and quality. Compared to traditional tenders, this study analyses the strengths and weaknesses of two procurement trials organised by Kela:
- Registration trial REKKU, where traditional tendering is replaced by a registration procedure and Kela defines the terms and prices for registration.
- A two-price trial, where Kela pays the service provider an additional 20% if the implemented course meets the quality requirements defined by Kela.
This study seeks to answer the key research question: What are the strengths and weaknesses of the registration trial and the two-price trial compared to traditional tendering?
Researchers
- Riitta Seppänen-Järvelä, Leading Researcher
- Sara Kuhmonen
- Visa Pitkänen
Project Implementation Period
1.7.2022–31.12.2023. The project has ended.
Project Results
This research project examined the benefits and weaknesses of a registration procedure implemented for Kela’s rehabilitation services compared to a more traditional tendering process. The study provided new information on the use of fixed prices in public procurement. The study examined how fixed prices compared to tendered prices quoted during tendering processes and how the procurement trial affected the number of participating service providers. A synthetic control method was used to analyse the impact that the procurement trial had on the number of participating service providers. The key takeaway of the study was that the use of fixed prices resulted in a reduction in the number of service providers willing to participate in the procurement, but, on the other hand, the number of approved service providers increased. Fixed pricing may have also resulted in some of the potential service providers deciding not to participate in the procurement. Especially with regard to Oma Väylä rehabilitation, the study found that setting a fixed price was challenging when no historical price information was available from previous competitive bidding processes. Study results have been forwarded to Kela, and they will be published in a scientific article and on Kela’s research blog.
Publications
- Kuhmonen, S., & Seppänen-Järvelä, R. (2025). Kilpailutus vai kiinteä hinta kuntoutuspalveluiden hankinnoissa – tuloksia hankintakokeilusta. Hallinnon tutkimus, 44(1). https://doi.org/10.37450/ht.138294
