Implications of global budget payment system on nursing home costs
AbstractPressure on health care systems due to the increasing expenditures of the elderly population is pushing policy makers to adopt new regulation and payment schemes for nursing home services. We sketch a simple theoretical model to predict the behavior of nursing homes under different payment schemes. We then investigate the implications of prospective payments on nursing home costs using a panel of 41 homes in Southern Switzerland observed over a 12-years period (1999-2010). To evaluate the impact of the recent policy change - from retrospective to prospective payment - we employ a fixed effects model with a time trend that is allowed to change after the policy reform. We find evidence that the new payment system reduces costs for nursing home care, ceteris paribus.
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Bibliographic InfoPaper provided by USI Università della Svizzera italiana in its series CEPRA working paper with number 1301.
Length: 29 pages
Date of creation: Nov 2012
Date of revision:
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Web page: http://www.library.lu.usi.ch
nursing homes; prospective payment; quality of care; policy change;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
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