However, it has become a well established industry because of the increasing demand for customers. Long-term care for consumers with certain reimbursements particularly those who are able to pay for their own care. Long-term term care has also experienced the need to operate in a more efficient way, cost effective manner as third party payers have become more restrictive in defining the types and amounts of costs for which they will pay. This has led to downsizing, including layoffs.
Moreover, it has motivated many providers of long-term care to get involved in various forms of reengineering, attempting to maintain or expand their particular portion of the market through reorganisation. Long-term care is experiencing some pressure (forces) that it had not been experiencing before. These are the same forces which have been acting on other sectors of healthcare for several past years. These forces have led to close down of some health institutions because they were unable to compete with other institutions offering the same services.
Health facilities have formed formal affiliations, health networks, resulting into mergers and contract management agreements as a means of survival. Though long-term care providers had not been involved in forming such networks, of late they are doing so. The players in the long-term care in the beginning of this millennium have come anticipate and expect competition and intrusion from not only from other sectors of that system but also from hospitals and from entrepreneurial newcomers from outside the conventional system.