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Excess Demand, the Percentage of Medicaid Patients, and the Quality of Nursing Home Care

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  • John A. Nyman
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    Abstract

    Most empirical studies of the determinants of the quality of nursing home care find a strong relationship between poor quality and a high percentage of Medicaid patients in the nursing home. These findings are often interpreted as evidence that the reimbursement rates paid for Medicaid patients are constraining nursing homes from providing higher quality care. Alternatively, this relationship can be attributed to the presence of excess demand eliminating the need to engage in quality competition for the less lucrative Medicaid patients. This paper tests these two hypotheses using Wisconsin data from 1979 and finds evidence favoring the latter.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

    Volume (Year): 23 (1988)
    Issue (Month): 1 ()
    Pages: 76-92

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    Handle: RePEc:uwp:jhriss:v:23:y:1988:i:1:p:76-92

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    Web page: http://jhr.uwpress.org/

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    Cited by:
    1. Cohen, Joel W. & Spector, William D., 1996. "The effect of Medicaid reimbursement on quality of care in nursing homes," Journal of Health Economics, Elsevier, Elsevier, vol. 15(1), pages 23-48, February.
    2. Grabowski, David C., 2001. "Medicaid reimbursement and the quality of nursing home care," Journal of Health Economics, Elsevier, Elsevier, vol. 20(4), pages 549-569, July.
    3. Yong Suk Lee & Andrew D. Foster, 2013. "Staffing Subsidies and the Quality of Care in Nursing Homes," Department of Economics Working Papers, Department of Economics, Williams College 2013-16, Department of Economics, Williams College.
    4. Haizhen Lin, 2010. "Do Minimum Quality Standards Improve Quality? A Case Study of the Nursing Home Industry," Working Papers, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy 2010-01, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    5. Bowblis, John R. & McHone, Heather S., 2013. "An instrumental variables approach to post-acute care nursing home quality: Is there a dime's worth of evidence that continuing care retirement communities provide higher quality?," Journal of Health Economics, Elsevier, Elsevier, vol. 32(5), pages 980-996.
    6. William J. Scanlon, 1992. "Possible Reforms for Financing Long-Term Care," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 6(3), pages 43-58, Summer.
    7. Lin, Haizhen & Prince, Jeffrey, 2013. "The impact of the partnership long-term care insurance program on private coverage," Journal of Health Economics, Elsevier, Elsevier, vol. 32(6), pages 1205-1213.
    8. Arndt R. Reicher & Magdalena Stroka, 2014. "Nursing Home Prices and Quality of Care - Evidence from Administrative Data," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0470, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    9. Shimizutani, Satoshi & Suzuki, Wataru, 2007. "Quality and efficiency of home help elderly care in Japan: Evidence from micro-level data," Journal of the Japanese and International Economies, Elsevier, vol. 21(2), pages 287-301, June.
    10. Haizhen Lin, 2014. "Revisiting the relationship between nurse staffing and quality of care in nursing homes: An instrumental variables approach," Working Papers, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy 2014-01, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.

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