Government Policy and the Cost and Quality of Nursing Homes

by Paul Gertler, Donald Waldman

Read Online Version

This research brief describes work documented in Paul J. Gertler, "Subsidies, Quality, and the Regulation of Nursing Homes," Journal of Public Economics, Vol. 38, 1989, pp. 33-52, and in Paul J. Gertler and Donald M. Waldman, "Quality-Adjusted Cost Functions and Policy Evaluation in the Nursing Home Industry," Journal of Political Economy, Vol. 100, No. 6, 1992, pp. 1232-1256.

Excerpt: The long-term convalescent health-care industry in the United States faces three well-documented problems: (1) many indigent patients cannot gain access to nursing homes; (2) the quality of nursing home care is often suspect; and (3) the cost of this care is considerable and continues to increase at a worrisome pace.

This report is part of the RAND Corporation research brief series. RAND research briefs present policy-oriented summaries of individual published, peer-reviewed documents or of a body of published work.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.