Competition in the market for nursing home care

Abstract

The competitive model may fit the nursing home sector better than it fits other health care markets, but Medicaid subsidies and regulation have not allowed the market to work freely, and nursing home insurance may cause further divergence from a competitive ideal. Incentives for both providers and consumers that capitalize on competitive aspects of the market might be used to improve outcomes of the nursing home market, especially under a system of comprehensive long-term care insurance.