Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Wednesday, February 14, 2018

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

Martin B. Hackmann estimates Incentivizing Better Quality of Care: The Role of Medicaid and Competition in the Nursing Home Industry.

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 8.8% following a universal 10% 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.

https://lawprofessors.typepad.com/antitrustprof_blog/2018/02/incentivizing-better-quality-of-care-the-role-of-medicaid-and-competition-in-the-nursing-home-indust.html

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