Do Report Cards Predict Future Quality? The Case of Skilled Nursing Facilities

Portia Y. Cornell, David C. Grabowski, Edward Norton and Momotazur Rahman

No 25940, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Report cards on provider performance are intended to improve consumer decision-making and address information gaps in the market for quality. However, inadequate risk adjustment of report-card measures often biases comparisons across providers. We test whether going to a skilled nursing facility (SNF) with a higher star rating affects outcomes for a patient. We exploit variation over time in the distance from a patient’s residential ZIP code to SNFs with different ratings to estimate the causal effect of admission to a higher-rated SNF on health care outcomes, including mortality. We found that patients who go to higher-rated SNFs experience lower mortality, fewer days in the nursing home, and fewer hospital readmissions.

JEL-codes: I11 I18 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-hea
Note: AG EH
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Citations: View citations in EconPapers (8)

Published as Cornell, Portia Y. & Grabowski, David C. & Norton, Edward C. & Rahman, Momotazur, 2019. "Do report cards predict future quality? The case of skilled nursing facilities," Journal of Health Economics, Elsevier, vol. 66(C), pages 208-221.

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