When Health Trumps Money: Economic Incentives and Health Equity in the Provision of Nursing Homes

Øystein Hernæs, Snorre Kverndokk, Simen Markussen and Henning Øien

No 10359, CESifo Working Paper Series from CESifo

Abstract: The allocation of public care services should be determined by individual needs but can be influenced by economic factors. This paper examines the impact of economic incentives on the allocation of nursing home care in the Norwegian long-term care system. The study uses a theoretical model and empirical data from the municipality of Oslo to determine if nursing home spots are allocated based on income, which would be financially advantageous for the provider. We do not find evidence that the economic incentives of the care provider play a role in the allocation of nursing homes. Thus, in this setting, needs seems to be the dominant factor for allocation of nursing home care, while economic incentives seem to play no significant role.

Keywords: long-term care; economic incentives in health care; health care equity (search for similar items in EconPapers)
JEL-codes: H51 I14 I18 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-age, nep-eur and nep-hea
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