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Implications of global budget payment on nursing home costs

Additional information

Authors
Di Giorgio L., Filippini M., Masiero G.
Type
Working paper
Year
2012
Language
English
Abstract
Pressure on health care systems due to the increasing expenditures of the elderly population is pushing policy makers to adopt new regulation and payment schemes for nursing home services. We sketch a simple theoretical model to predict the behavior of nursing homes under different payment schemes. We then investigate the implications of prospective payments on nursing home costs using a panel of 41 homes in Southern Switzerland observed over a 12-years period (1999-2010). To evaluate the impact of the recent policy change - from retrospective to prospective payment - we employ a fixed effects model with a time trend that is allowed to change after the policy reform. We find evidence that the new payment system reduces costs for nursing home care, ceteris paribu
Series
CEPRA Working paper N. 1/2013, Università della Svizzera italiana
Keywords
Nursing homes; prospective payment; quality of care; policy change