Racial Differences in Nursing Home Value Added

Liran Einav, Amy Finkelstein, Neale Mahoney and James C. Okun

No 34324, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use detailed data on the evolution of health for about 0.8 million Black and 5.4 million white nursing home patients covered by Medicare between 2011 and 2019 to estimate race-specific value-added measures for more than 8,000 nursing homes in the United States. We estimate that the average nursing home value-added experienced by Black patients is about 30% lower than that received by white patients. Most of this gap reflects differences in value-added experienced by similar Black and white patients within the same nursing home, rather than differences in value-added across the nursing homes they go to.

JEL-codes: H44 I1 I14 L0 (search for similar items in EconPapers)
Date: 2025-10
Note: AG EH IO LS
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