Nursing homes and the Roemer-Feldstein hypothesis

Area of Science:

• Healthcare policy
• Health services research
• Geriatric care

Background:

• The Certification of Need theory relies on the Roemer-Feldstein hypothesis.
• This hypothesis posits a direct relationship between healthcare service demand and bed supply.
• It's often applied to nursing homes despite being developed from hospital data.

Purpose of the Study:

• To evaluate the applicability of the Roemer-Feldstein hypothesis to nursing home bed supply and utilization.
• To assess the relationship between nursing home bed supply and the appropriateness of patient placement.

Main Methods:

• Analysis of nursing home placement data.
• Correlation analysis between nursing home bed supply and bed utilization rates.
• Examination of patient placement appropriateness in relation to bed supply.

Main Results:

• A high correlation was observed between nursing home bed supply and bed utilization.
• Increased skilled nursing facility bed supply was associated with a decrease in inappropriate patient placements.
• Nursing home utilization rates require assessment of service appropriateness, not just bed supply.

Conclusions:

• The Roemer-Feldstein hypothesis may be an inadequate basis for regulating nursing home bed supply.
• Future regulatory models should incorporate sophisticated bed supply notions and assess service appropriateness.
• Empirical verification is crucial for developing effective healthcare resource management strategies.