Related Experiment Videos
Nursing home closures, changes in ownership, and competition
1Department of Health Policy and Management, Graduate School of Public Health, University of Pittsburgh, PA 15261, USA. CASTLEN@Pitt.edu
Summary
Increased competition in the nursing home market leads to a higher likelihood of facility closures. This study found that nursing homes in more competitive environments were significantly more likely to close between 1992 and 1998.
Area of Science:
- Health Services Research
- Economics
Background:
- Nursing home closures and ownership changes impact healthcare access and quality.
- Understanding market dynamics is crucial for nursing home stability.
Purpose of the Study:
- To investigate the relationship between market competition and nursing home closure or ownership change.
- To determine if higher competition increases the probability of nursing home closure.
Main Methods:
- Utilized nationally representative data from the Online Survey, Certification, and Reporting (OSCAR) system (1992-1998).
- Employed multinomial logistic regression analyses.
- Measured market competition using the Herfindahl index.
Main Results:
- Between 1992 and 1998, 621 nursing homes closed and 6,471 changed ownership.
- The annual closure rate was 0.7% of facilities.
- Facilities in more competitive environments demonstrated a significantly higher likelihood of closure.
Conclusions:
- Higher levels of competition in the nursing home market are associated with increased closure rates.
- Market competition is a significant factor influencing the survival of nursing facilities.