Nursing Homes in Equilibrium: Implications for Long-term Care Policies

Speaker: Prof Tatyana Koreshkova

Affiliation: Concordia University

Online via Zoom: https://uqz.zoom.us/j/82603079317 

Abstract

We build an equilibrium model of a nursing home market with decision-makers on both sides of the market. On the demand side, heterogeneous households with stochastic needs for long-term care solve dynamic optimization problems, choosing between in-home and nursing-home care. On the supply side, locally competitive nursing homes decide prices and intensities of care given the household demand. Medicaid provides long-term care to the poorest, but allocating care not based on prices also causes inefficiency. We examine the impacts of various long-term care policies using our model. Subsidizing in-home care turns out to be welfare-enhancing. Households’ welfare increases significantly, but the increase in government spending is limited as it reduces the number of Medicaid enrollees. Our policy evaluations also reveal the importance of the equilibrium approach in measuring the welfare and distributional effects of policies. Keywords: Long-term Care, Nursing Home, Medicaid.

About the presenter's meeting

If you would like to meet with Prof Koreshkova, please contact Dr Satoshi Tanaka