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The Effect of Public Policies on Nursing Home Care in the United States

Author

Listed:
  • O. David Gulley

    (Economics Department, Bentley College)

  • Rexford E. Santerre

    (University of Connecticut)

Abstract

Given demographic trends, public policies in the future may be aimed at stimulating the availability of nursing home care in the U.S. This paper estimates how certificate of need laws, Medicaid reimbursement rates, and state corporate income tax rates affect the availability of nursing home care in markets throughout the U.S. The results indicate that the Medicaid reimbursement rate directly affects the availability of nursing home care. The findings also suggest that the state corporate tax rate inversely influences the provision of nursing care. Finally, the availability of nursing care is not affected by the presence of certificate of need laws.

Suggested Citation

  • O. David Gulley & Rexford E. Santerre, 2003. "The Effect of Public Policies on Nursing Home Care in the United States," Eastern Economic Journal, Eastern Economic Association, vol. 29(1), pages 93-104, Winter.
    • Handle: RePEc:eej:eeconj:v:29:y:2003:i:1:p:93-104
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume29/V29N1P93_104.pdf
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    References listed on IDEAS

    as
    1. Gulley, O. David & Santerre, Rexford E., 1993. "The Effect of Tax Exemption on the Market Share of Nonprofit Hospitals," National Tax Journal, National Tax Association, vol. 46(4), pages 477-86, December.
    2. Gulley, O. David & Santerre, Rexford E., 1993. "The Effect of Tax Exemption on the Market Share of Nonprofit Hospitals," National Tax Journal, National Tax Association;National Tax Journal, vol. 46(4), pages 477-486, December.
    3. Meiners, Mark R., 1982. "An econometric analysis of the major determinants of nursing home costs in the United States," Social Science & Medicine, Elsevier, vol. 16(8), pages 887-898, January.
    4. Lynk, William J, 1995. "Nonprofit Hospital Mergers and the Exercise of Market Power," Journal of Law and Economics, University of Chicago Press, vol. 38(2), pages 437-461, October.
    5. Rexford E. Santerre & Dana C. Bennett, 1992. "Hospital Market Structure and Cost Performance: A Case Study," Eastern Economic Journal, Eastern Economic Association, vol. 18(2), pages 209-219, Spring.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Rexford E. Santerre & John A. Vernon, 2005. "Testing for Ownership Mix Efficiency: The Case of the Nursing Home Industry," NBER Working Papers 11115, National Bureau of Economic Research, Inc.
    2. Knox, Kris Joseph & Blankmeyer, Eric C. & Trinidad, José A. & Stutzman, J.R., 2009. "Predicting bankruptcy in the Texas nursing facility industry," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(3), pages 1047-1064, August.
    3. David C. Grabowski & Edward C. Norton, 2012. "Nursing Home Quality of Care," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 29, Edward Elgar Publishing.

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    More about this item

    Keywords

    Demographics; Nursing;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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