Nursing Home Quality as a Common Good

David C. Grabowski, Jonathan Gruber and Joseph J. Angelelli
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David C. Grabowski: Harvard University
Jonathan Gruber: Massachusetts Institute of Technology
Joseph J. Angelelli: Paraprofessional Healthcare Institute

The Review of Economics and Statistics, 2008, vol. 90, issue 4, 754-764

Abstract: A long-standing assumption among economists is that nursing home quality is common across Medicaid and private-pay patients within a shared facility. However, there has been only limited empirical work addressing this issue. Using a unique individual-level panel of residents of nursing homes from seven states, we exploit both within-facility and within-person variation in payer source and quality to examine this issue. We also test the robustness of these results across states with different Medicaid and private-pay rate differentials. Across various identification strategies, our results are consistent with the assumption of common quality across Medicaid and private-paying patients within facilities. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2008
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