Entry, Growth and Exit Patterns in Home Health Care Industry

27 Pages Posted: 20 Jan 2023

See all articles by Dakshina G. De Silva

Dakshina G. De Silva

Lancaster University - Department of Economics

Hojin Jung

Jeonbuk National University

Robert P. McComb

Texas Tech University - Department of Economics

Anita R. Schiller

Department of Economics - Lancaster University Management School

Mike Tsionas

Lancaster University

Abstract

The expansion of home health care could allow the elderly to gain easy access to medical services in rural areas. Although the most of the previous studies focus on the impact of the use of home health care on hospital discharges or the determinants of geographical variation, we examine entry, growth, and exit patterns of home health care providers. In particular, using a detail establishment-level data from Texas, we investigate the determinants of entry, growth, and exit patterns of home care providers. Our results indicate that home care providers almost doubled in Texas during 2000 and 2006 and, hence, the average distance between households and home care establishments decreased by more than 50 percent. We also nd that entrants could enjoy localized economies from the presence of rms that provides complementary medical services. Our results also provide strong evidence of spatial persistence of employment in home cares industry.

Keywords: Home health care, copula, thin markets, entry, growth and exit

Suggested Citation

De Silva, Dakshina G. and Jung, Hojin and McComb, Robert P. and Schiller, Anita R. and Tsionas, Efthymios G., Entry, Growth and Exit Patterns in Home Health Care Industry. Available at SSRN: https://ssrn.com/abstract=4331266 or http://dx.doi.org/10.2139/ssrn.4331266

Dakshina G. De Silva

Lancaster University - Department of Economics ( email )

Hojin Jung (Contact Author)

Jeonbuk National University ( email )

Korea, Republic of (South Korea)

Robert P. McComb

Texas Tech University - Department of Economics ( email )

MS 41014
Lubbock, TX 79409-1014
United States
806 742-2466 x240 (Phone)

Anita R. Schiller

Department of Economics - Lancaster University Management School ( email )

Lancaster, LA1 4YX
United Kingdom

Efthymios G. Tsionas

Lancaster University ( email )

Lancaster LA1 4YX
United Kingdom

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