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Title:Equilibrium Quality Choices in Nursing Homes
Author(s):Copeland, Craig Stanton
Doctoral Committee Chair(s):Arnould, Richard J.
Department / Program:Economics
Degree Granting Institution:University of Illinois at Urbana-Champaign
Subject(s):Economics, Theory
Abstract:This dissertation examines the resulting equilibrium quality for nursing homes from changes in the Medicaid reimbursement rate. The first chapter summarizes and evaluates the current literature on nursing homes. The second chapter builds upon the model in the present literature by allowing Medicaid patients to value quality regardless of market conditions. In addition, the occupancy of the home and the mix of patients (private-pay or Medicaid) are included in the empirical work to determine their effects on quality from changes in the Medicaid rate. This second chapter shows that if Medicaid patients are allowed to value quality, an increase in the Medicaid rate will lead to an increase in the quality that a home provides regardless of the market conditions. Furthermore, its also shown that the quality increase will be larger for homes with a higher percentage of private-pay patients and a higher occupancy. In the third chapter, a new model of nursing home behavior is developed to include rivalry. This model tries to closer match reality and shows that as the greater importance that private-pay patients place on quality relative to price the more nursing homes will compete in quality. Thus, nursing homes will increase quality from increases in the Medicaid rate, and homes will match other homes' increases in quality. The increase in quality from increases in the Medicaid rate is shown to hold even when private-pay patients place a greater importance on price relative to quality.
Issue Date:1997
Description:102 p.
Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 1997.
Other Identifier(s):(MiAaPQ)AAI9737081
Date Available in IDEALS:2015-09-25
Date Deposited:1997

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