A review of relevant literature shows that nursing homes can benefit from economies of scale. Therefore, expanding their scale can reduce the cost of providing high-quality services. Moreover, sufficient market information could reduce the monopolistic power of providers and release the necessary of scale and ownership restrictions. The primary mechanism for accreditation to improve quality is to disclose information regarding care quality. The disclosure of nursing homes’ care quality can facilitate consumers’ smart decision, thereby inducing market competition. However, accreditation may enhance top-ranking providers’ monopolistic ability to raise prices and thus the assessment of care quality should reflect the clinical outcomes of care.