Incentivizing Better Quality of Care: The Role of Medicaid and Competition in the Nursing Home Industry
NBER Working Paper No. 24133
Issued in December 2017
NBER Program(s):Aging, Health Care, Health Economics, Industrial Organization, Public Economics
This paper develops a model of the nursing home industry to investigate the quality effects of policies that either raise regulated reimbursement rates or increase local competition. Using data from Pennsylvania, I estimate the parameters of the model. The findings indicate that nursing homes increase the quality of care, measured by the number of skilled nurses per resident, by 8.8% following a universal 10% increase in Medicaid reimbursement rates. In contrast, I find that pro-competitive policies lead to only small increases in skilled nurse staffing ratios, suggesting that Medicaid increases are more cost effective in raising the quality of care.
The NBER Bulletin on Aging and Health provides summaries of publications like this.
You can sign up to receive the NBER Bulletin on Aging and Health by email.
Supplementary materials for this paper:
Machine-readable bibliographic record -
Document Object Identifier (DOI): 10.3386/w24133
Users who downloaded this paper also downloaded* these:
|Einav and Finkelstein
||w24055 Moral Hazard in Health Insurance: What We Know and How We Know It
|Park, Basu, Coe, and Khalil
||w24038 Service-level Selection: Strategic Risk Selection in Medicare Advantage in Response to Risk Adjustment
|Chandra and Staiger
||w24035 Identifying Sources of Inefficiency in Health Care
|Allcott, Diamond, and Dubé
||w24094 The Geography of Poverty and Nutrition: Food Deserts and Food Choices Across the United States
|Adhvaryu, Fenske, Khanna, and Nyshadham
||w24309 Resources, Conflict, and Economic Development in Africa