IDEAS home Printed from https://ideas.repec.org/a/oup/restud/v56y1989i1p141-150..html
   My bibliography  Save this article

On the Economics of Institutional Care of the Elderly in the U.S.: The Effects of a Change in Government Reimbursement

Author

Listed:
  • Richard Dusansky

Abstract

We present an optimization model of a nursing home which incorporates the following characteristics: proprietary profit maximization, the distinction between private and Medicaid patients, non-essential expenditure aimed at market identification, and cost-based government reimbursement. The model is used to analyze the effect of changes in government reimbursement. The theoretical analysis indicates that increases in government reimbursement need not lead to increases in non-essential cost expenditures and private patient charges; in fact the contrary may result. The econometric analysis suggests empirical support for the latter. Higher reimbursement factors are associated with lower charges.

Suggested Citation

  • Richard Dusansky, 1989. "On the Economics of Institutional Care of the Elderly in the U.S.: The Effects of a Change in Government Reimbursement," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(1), pages 141-150.
    • Handle: RePEc:oup:restud:v:56:y:1989:i:1:p:141-150.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/2297755
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roberta Walsh & Jane Kolodinsky, 1992. "Prices, income and the economic status of older, single women: Implications for health care and housing policies," Forum for Social Economics, Springer;The Association for Social Economics, vol. 22(1), pages 48-59, March.
    2. Dana Mukamel & William Spector, 2002. "The competitive nature of the nursing home industry: price mark ups and demand elasticities," Applied Economics, Taylor & Francis Journals, vol. 34(4), pages 413-420.
    3. Cohen, Joel W. & Spector, William D., 1996. "The effect of Medicaid reimbursement on quality of care in nursing homes," Journal of Health Economics, Elsevier, vol. 15(1), pages 23-48, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:restud:v:56:y:1989:i:1:p:141-150.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/restud .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.