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Better off at home? Effects of nursing home eligibility on costs, hospitalizations and survival

Pieter Bakx, Bram Wouterse, Eddy Van Doorslaer and Albert Wong

Journal of Health Economics, 2020, vol. 73, issue C

Abstract: Encouraging and helping elderly to postpone a nursing home admission appears to be a win-win that keeps long-term care spending in check and is in line with the target population’s preferences, but there is little evidence about its effects. We study the causal impact of nursing home admission eligibility using Dutch administrative data and exploiting variation between randomly assigned assessors in their tendency to grant eligibility for a nursing home admission. We find a drop in medical care use when eligibility is granted, especially in hospital admissions, while total healthcare spending is unaffected. This suggests that postponing an admission may not always be a win-win after all.

Keywords: Long-term care; Policy evaluation; Instrumental variables (search for similar items in EconPapers)
JEL-codes: C26 I10 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:73:y:2020:i:c:s0167629619307635

DOI: 10.1016/j.jhealeco.2020.102354

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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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