Abstract
In the nursing home industry, government regulators are concerned with assuring a high standard of quality, providing the poor with access to care, and controlling the expansion of the industry. To this end, the government has created the Medicaid (and Medicare) patient subsidy programs and the Certificate of Need (CON) cost containment program. This paper theoretically and empirically analyzes the impact of Medicaid and CON policy on nursing home behavior. The theoretical analysis is complicated by the fact that both proprietary and ‘not for profit’ nursing homes exist, and the empirical work is complicated by the problem that quality is not directly observed.
I am indebted to Ralph Andreano, Thomas Coleman, Arthur Goldberger, Michael Grossman, George Jakubson, Salih Neftci, Robert Porter, Harvey Rosen, Warren Sanderson, Amy Taylor, Charles Wilson, and the participants of the NBER conference on Incentives in Government Financing for helpful suggestions. Of course, I am responsible for any remaining errors.
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© 1991 Kluwer Academic Publishers
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Gertler, P.J. (1991). Subsidies, quality, and regulation in the U.S. nursing home industry. In: Duru, G., Paelinck, J.H.P. (eds) Econometrics of Health Care. Advanced Studies in Theoretical and Applied Econometrics, vol 20. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2051-4_7
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DOI: https://doi.org/10.1007/978-94-009-2051-4_7
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