Do regulatory interventions change aged care provider behaviour?

Drawing on her background as a lawyer, Yolanda became interested in the motivations that drive compliance. Her research examines whether non-punitive regulatory actions, such as investigations, mediation and education, can influence organisational behaviour without the need for sanctions or penalties. 

“It's just really fascinating to explore why people comply with the rules and at which point they actually don't care about them,” Yolanda said. 

Using data from Australian residential aged care homes, Yolanda investigated the impact of the non-punitive intervention of complaint investigations conducted by the Aged Care Quality and Safety Commission. Unlike formal enforcement actions, these investigations are often not publicly disclosed and may not result in penalties, making them an ideal way to study whether organisations respond to regulatory scrutiny alone. 

It's just really fascinating to explore why people comply with the rules and at which point they actually don't care about them.

The findings suggest they do. Following a complaint investigation, aged care homes allocated more resources to their operational staff. 

“Homes that underwent complaint investigations experienced a significant increase in staffing levels compared with homes that did not, particularly in the numbers of direct care workers, registered nurses and personal care workers.” 

On average, total staffing hours increased by around 3.4 percent, indicating that providers were making tangible operational changes in response to regulatory attention. 

“We found that even though non-punitive intervention will not lead to consequences directly, it increases the likelihood of detection and the probability of punishment or action.” 

The influence of financial viability  

The research also found that organisational resources matter. Homes that were financially profitable and those belonging to larger provider groups were more likely to increase staffing after an investigation. This suggests that while non-punitive interventions can encourage compliance, an organisation's capacity to respond is shaped by the resources available to it. 

“This demonstrates that financial viability is a really important factor in the sector, and it will influence firms' decision in response to compliance,” she said. “Which means regulators may need to pay more attention to loss-making firms.” 

For regulators, the findings highlight the value of non-punitive approaches. Regulatory actions do not always need to rely on penalties to drive change. However, the research also points to the need for greater support and attention for providers with fewer financial and organisational resources, which may face greater challenges in responding to compliance concerns. 

This demonstrates that financial viability is a really important factor in the sector, and it will influence firms' decision in response to compliance.

Yolanda's work offers new insights into how regulation shapes behaviour in aged care and demonstrates that even soft forms of intervention can have meaningful effects on the quality and delivery of care. 

What’s next?