Staffing subsidies and the quality of care in nursing homes

Andrew Foster and Yong Suk Lee

Journal of Health Economics, 2015, vol. 41, issue C, 133-147

Abstract: Concerns about the quality of state-financed nursing home care has led to the wide-scale adoption by states of pass-through subsidies, in which Medicaid reimbursement rates are directly tied to staffing expenditure. We examine the effects of Medicaid pass-through on nursing home staffing and quality of care by adapting a two-step FGLS method that addresses clustering and state-level temporal autocorrelation. We find that pass-through subsidies increases staffing by about 1% on average and 2.7% in nursing homes with a low share of Medicaid patients. Furthermore, pass-through subsidies reduce the incidences of pressure ulcer worsening by about 0.9%.

Keywords: Medicaid; Wage pass-through; Nursing home; Quality of care; FGLS (search for similar items in EconPapers)
JEL-codes: C23 H51 I18 J20 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Staffing Subsidies and the Quality of Care in Nursing Homes (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:41:y:2015:i:c:p:133-147

DOI: 10.1016/j.jhealeco.2015.02.002

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