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The effect of audit regimes on applications for long-term care

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  • Lindeboom, Maarten
  • van der Klaauw, Bas
  • Vriend, Sandra

Abstract

This paper studies the effects of various audit regimes, differing in the degree of control and the presence of performance incentives, on behavior of care providers filing applications for providing long-term care services to patients. We present evidence from a large-scale field experiment in the Dutch market for long-term care. We find that increasing the degree of control reduces the number of applications and that introducing performance incentives reduces this even further. However, we find evidence for substitution with other types of long-term care services, which are often less extensive. Finally, we find detrimental effects on audit approval rates, but we provide some results showing that assessors are less strict when audits do not have direct implications.

Suggested Citation

  • Lindeboom, Maarten & van der Klaauw, Bas & Vriend, Sandra, 2015. "The effect of audit regimes on applications for long-term care," CEPR Discussion Papers 10572, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10572
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    More about this item

    Keywords

    Auditing; Field experiment; Incentives; Long-term care;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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