Local authorities are responsible for monitoring all private social service providers operating in their area regardless of if the local authority buys services from them or not. Where necessary, local authorities must direct and provide guidance to service providers on the measures to improve the quality and adequacy of their services. Local authorities must also ensure that the standard of the services provided by private service providers is on the same level with public services.
Contractual services
When a local authority buys services from a private service provider, the provision of the services is based on a contract. The contract must define the minimum requirements set for the service, and these requirements must be met throughout the contract period. In addition to being responsible for monitoring private service providers in their area, local authorities must also enforce the performance of the contract. Local authorities may add sanction clauses to the contract and impose a sanction if the service provider fails to provide services to the standard specified in the contract. A sanction can be a penalty or for example the refusal to buy services until the service provider has demonstrated that their services meet the requirements specified in the contract.
Services provided with service vouchers
Local authorities may provide services with service vouchers. The service voucher system gives the customer the freedom to choose the service provider of their choice. However, customers using a service voucher may have to pay a portion of the price of the service if it is not fully covered by the service voucher. Local authorities can determine the value of the service voucher independently, which is why the sum covered by the customer can vary between different municipalities.
Local municipalities determine the criteria for the service providers providing services against service vouchers. If the service provider meets the criteria, the local authority accepts the service provider as a ‘service voucher provider’ and adds them to their register of service voucher providers. Local authorities must monitor the quality and adequacy of the operations of service voucher providers.
A service voucher customer enters into a contract with the service provider independently. This contractual relationship between the customer and service provider is subject to the provisions and principles of consumer and contract laws.
Services bought by the customer
If a customer acquires and pays for their social services on their own, the customer and service provider enter into a contract subject to the provisions and principles of consumer and contract laws. Local authorities must ensure that the services provided by the service providers are adequate and of good quality even if the local authority was not involved in the purchase of the service and if there is no contract between the local authority and the service provider.
If a local authority detects any problems in the services provided by a service provider, the local authority must steer the service provider to operate in line with the legislation. If a service provider fails to improve its services after joint discussions and other steering measures, the local authority must report them to the Regional State Administrative Agency.