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Implications of global budget payment system on nursing home costs

  • Laura Di Giorgio

    (Institute of Economics, University of Lugano)

  • Massimo Filippini

    (Institute of Economics, University of Lugano; ETH, Zurich, Switzerland)

  • Giuliano Masiero

    ()

    (University of Bergamo, Italy; Institute of Economics, University of Lugano, Switzerland)

Pressure 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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Paper provided by USI Università della Svizzera italiana in its series CEPRA working paper with number 1301.

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Length: 29 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:lug:wcepra:1301
Contact details of provider: Web page: https://www.bul.sbu.usi.ch

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