Incentivizing Better Quality of Care: The Role of Medicaid and Competition in the Nursing Home Industry

Hackmann, Martin B.

Incentivizing Better Quality of Care: The Role of Medicaid and Competition in the Nursing Home Industry

Hackmann, Martin B.

Abstract

This paper develops a model of the nursing home industry to investigate the quality effects of policies that either raise regulated reimbursement rates or increase local competition. Using data from Pennsylvania, I estimate the parameters of the model. The findings indicate that nursing homes increase the quality of care, measured by the number of skilled nurses per resident, by 8.7 percent following a universal 10 percent increase in Medicaid reimbursement rates. In contrast, I find that pro-competitive policies lead to only small increases in skilled nurse staffing ratios, suggesting that Medicaid increases are more cost effective in raising the quality of care.

‍

This resource is found in our Actionable Strategies for Government: Optimizing Workload & Workflows (Support & Ensure Safe Staffing).

‍

‍

View Resource
American Economic Review
2019
Profession(s)
Nurses
Advanced Practice Nurses
Topic(s)
Patient/Community Outcomes
Policy
Resource Types
Commentaries & Blogs
Study Type(s)
Expert Opinion, Commentary, etc.
Action Strategy Area(s)
Workload & Workflows
Recognition & Reward
Setting(s)
Long-Term Care
Academic Role(s)
No items found.
No items found.