Factors affecting the entry of for-profit providers into a price regulated market for formal long-term care services: A case study from Japan

► Price regulation in the healthcare market creates distinct incentives between for-profit and non-profit providers. ► Since the introduction of long-term care insurance in 2000, for-profit providers have been providing homecare in Japan. ► We investigated selective market entry by for-profit providers using two-wave nationwide panel data. ► Local demand size and cost related factors significantly affect choices of for-profit providers in terms of local market entry. ► Price regulation should be redesigned to enhance fair competition and ensure efficient care delivery.