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The eldercare landscape: Evidence from California.

Daniel P McMillen1, Elizabeth T Powers2

  • 1Department of Economics, University of Illinois at Urbana-Champaign, Urbana, IL, USA.

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|September 24, 2017
PubMed
Summary

Nursing homes are more likely to be built near hospitals, suggesting that proximity to healthcare facilities influences their location. This spatial distribution is key for efficient long-term care services.

Keywords:
agglomeration economiesconditionally parametric (CPAR) modelhospitallocalization economieslocationnursing home

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Area of Science:

  • Healthcare management
  • Urban planning
  • Gerontology

Background:

  • The location of nursing homes significantly impacts the long-term care industry's efficiency.
  • Limited research exists on the specific spatial distribution patterns of nursing homes.

Purpose of the Study:

  • To investigate factors influencing nursing home location choices.
  • To examine the relationship between hospital proximity and nursing home siting.
  • To analyze the spatial distribution of nursing homes in California.

Main Methods:

  • Econometric modeling of location decisions.
  • Analysis of all freestanding, MediCal-licensed long-term care facilities in California.
  • Focus on agglomeration economies around hospitals.

Main Results:

  • Nursing homes show a higher probability of locating within the same census tract as a hospital.
  • Increased likelihood of nursing home placement in census tracts closer to hospitals.
  • Evidence supports the influence of hospital proximity on nursing home location.

Conclusions:

  • Hospital proximity is a significant factor in nursing home location decisions.
  • Agglomeration economies around hospitals appear to drive nursing home spatial distribution.
  • Findings inform strategies for efficient long-term care facility planning and resource allocation.