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The impact of ownership type on nursing home outcomes

  • William D. Spector

    (Agency for Health Care Policy and Research, Rockville, USA)

  • Thomas M. Selden

    (Agency for Health Care Policy and Research, Rockville, USA)

  • Joel W. Cohen

    (Agency for Health Care Policy and Research, Rockville, USA)

This paper examines the sorting of residents between for-profit and nonprofit nursing homes and the health outcomes of those residents conditional on ownership type. Using data from the 1987 National Medical Expenditure Survey, we find evidence of systematic sorting of residents by ownership type, and significant effects of ownership type on outcomes. These results are broadly consistent with the hypothesis that for-profit and nonprofit homes exploit their informational advantages to differing extents in a market characterized by asymmetric information. © 1998 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 7 (1998)
Issue (Month): 7 ()
Pages: 639-653

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Handle: RePEc:wly:hlthec:v:7:y:1998:i:7:p:639-653
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