The Nursing Home Market

This work examines the components of the nursing home market and considers their implications for proposed long term care policy. Discussing the relationship between nursing home care financing policy and current use and expenditures, the author argues for an understanding of the role played by the determinants of nursing home supply and demand. While many recent studies have explored factors affecting the use of nursing home care by the elderly, few have used a nationally representative sample, and fewer still have investigated how out-of-pocket price as well as supply affects use. This study models nursing home care use by elucidating the determinants of the demand for and the supply of nursing home care using a nationally representative sample.