In 1997, Ontario's Community Care Access Centres (CCACs) were given the authority to purchase home care services from for-profit and not-for-profit providers through a competitive bidding process. The purpose of this reform was to encourage competition between home care providers, with the twin objectives of lowering costs and increasing service quality. According to previous literature, competition leads to lower staff wages and a destabilized labour market, which can negatively impact quality of care. This thesis investigates how competition amongst home care service providers in Ontario affected the gross nursing payments to private home care providers between 1995 and 2001. Regression analyses were performed to ascertain the relationship between measures of competition, profit status of the provider agencies, and gross nursing rates, while holding other factors constant. The results suggest that competition and profit status of the home care agency are important determinants of payments for nursing services.