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Do elderly choose nursing homes by quality, price or location?

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  • Stroka, Magdalena
  • Schmitz, Hendrik

Abstract

Quality report cards addressing information asymmetry in the health care market have become a popular strategy used by policymakers to improve the quality of care for elderly. Using individual level data from the largest German sickness fund merged with institutional level data, we examine the relationship between nursing home quality, as measured by recently introduced report cards, nursing home prices, nursing home s location and the individual choice of nursing homes. Report cards were stepwise introduced as of 2009 and we use a sample of 2010 that includes both homes that had been evaluated at that time and that had not yet been. Thus, we can distinguish between institutions with good and bad ratings as well as non-rated nursing homes. We find that the probability of choosing a nursing home decreases in distance and price. However, we find no significant effect of reported quality on individuals choice of nursing homes.

Suggested Citation

  • Stroka, Magdalena & Schmitz, Hendrik, 2015. "Do elderly choose nursing homes by quality, price or location?," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113226, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc15:113226
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    Citations

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    Cited by:

    1. Herr, Annika & Nguyen, Thu-Van & Schmitz, Hendrik, 2015. "Does quality disclosure improve quality? Responses to the introduction of nursing home report cards in Germany," DICE Discussion Papers 176, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    2. Marie-Louise Leroux & Grégory Ponthiere, 2016. "Nursing Home Choice, Family Bargaining and Optimal Policy in a Hotelling Economy," CESifo Working Paper Series 5892, CESifo Group Munich.
    3. Herr, A. & Saric, A., 2016. "The Welfare Effects of Single Rooms in German Nursing Homes: A Structural Approach," Health, Econometrics and Data Group (HEDG) Working Papers 16/23, HEDG, c/o Department of Economics, University of York.
    4. Hange, Ulrich, 2015. "The Market for Nursing Homes in Germany: a spatial competition approach," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112853, Verein für Socialpolitik / German Economic Association.
    5. Adam Pilny & Magdalena A. Stroka, 2016. "Determinants of received long-term care – Individual responses to regional nursing home provisions," Health Care Management Science, Springer, vol. 19(4), pages 326-337, December.
    6. repec:zbw:rwirep:0525 is not listed on IDEAS
    7. Herr, Annika & Nguyen, Thu-Van & Schmitz, Hendrik, 2016. "Public reporting and the quality of care of German nursing homes," Health Policy, Elsevier, vol. 120(10), pages 1162-1170.
    8. Pilny, Adam & Stroka, Magdalena A., 2014. "Choice of Received Long-term Care – Individual Responses to Regional Nursing Home Provisions," Ruhr Economic Papers 525, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Adam Pilny & Magdalena A. Stroka, 2014. "Choice of Received Long-term Care – Individual Responses to Regional Nursing Home Provisions," Ruhr Economic Papers 0525, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I19 - Health, Education, and Welfare - - Health - - - Other

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