Producing Health: Measuring Value Added of Nursing Homes / Liran Einav, Amy Finkelstein, Neale Mahoney.

Format:

Book

Author/Creator:

Einav, Liran.

Contributor:

National Bureau of Economic Research.

Finkelstein, Amy.

Mahoney, Neale.

Series:

Working Paper Series (National Bureau of Economic Research) no. w30228.

NBER working paper series no. w30228

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2022.

Summary:

We develop a stylized model that allows us to estimate a value-added measure for nursing homes ("SNFs") which accounts for patient selection both into and out of a SNF. We use the model, together with detailed data on the physical and mental health of about 6 million Medicare SNF patients between 2011 and 2016, to estimate the value added for about 14,000 distinct SNFs. We document substantial heterogeneity in value added. Nationwide, compared to a 10th percentile SNF, a 90th percentile SNF is able to discharge a patient at the same health level about a week sooner, which is about one third of the median length of stay. Heterogeneity in value added within a market is almost as large as it is nationwide. Our results point to the potential for substantial gains through policies that encourage reallocation of patients to higher-quality SNFs within their market.

Notes:

Print version record

August 2022.