Nursing Home Discharges and Exhaustion of Medicare Benefits

46 Pages Posted: 17 Oct 2007 Last revised: 28 Mar 2010

See all articles by Alan M. Garber

Alan M. Garber

Stanford University - Center for Primary Care and Outcomes Research; Government of the United States of America - Palo Alto Veterans Affairs Medical Center; National Bureau of Economic Research (NBER)

Thomas E. MaCurdy

Stanford University; National Bureau of Economic Research (NBER)

Date Written: March 1991

Abstract

The price sensitivity of demand for nursing home care is a subject of considerable policy interest. Standard methods for measuring price responsiveness are difficult to apply to nursing home care, since accurate price information is usually unavailable and prices may reflect unmeasured quality characteristics. We estimate price sensitivity by exploiting the dynamic price variation implicit in Medicare payment rules for nursing home care. We determine whether the hazard rate for nursing home discharge shifts in response to the price changes that occur when Medicare coverage diminishes or ends. Our findings provide strong evidence that the duration of nursing home admissions is sensitive to price.

Suggested Citation

Garber, Alan M. and MaCurdy, Thomas E., Nursing Home Discharges and Exhaustion of Medicare Benefits (March 1991). NBER Working Paper No. w3639. Available at SSRN: https://ssrn.com/abstract=480206

Alan M. Garber (Contact Author)

Stanford University - Center for Primary Care and Outcomes Research ( email )

179 Encina Commons
Stanford, CA 94305-6019
United States
650-723-0920 (Phone)
650-724-5182 (Fax)

Government of the United States of America - Palo Alto Veterans Affairs Medical Center

Palo Alto, CA 94304
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Thomas E. MaCurdy

Stanford University ( email )

30 Alta Road
Stanford, CA 94305
United States
650-723-3983 (Phone)
650-725-5702 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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