Journal article
Effects of Nursing Home Closures on Occupancy and Finances of Nearby Nursing Homes
Medical care research and review, Vol.82(2), pp.153-164
04/2025
DOI: 10.1177/10775587241296182
PMID: 39560078
Abstract
This study estimates the effect of nursing home closure on occupancy, net profit margin, and operating margin of nearby nursing homes. We use national nursing home data from 2009 to 2019 from Medicare cost reports, Medicare Provider of Services (POS), and LTCfocus.org data. Using the Callaway and Sant’Anna difference-in-differences model, we compare the changes in occupancy, net profit margin, and operating margin between incumbent nursing homes in markets with any closure and nursing homes in markets without a closure, overall, and across rurality. Our findings suggest that nursing home closure improves the occupancy rates of remaining nursing homes in the same market in rural areas but there is little evidence of effects in metropolitan and micropolitan areas. Nursing home regulators and local officials should consider the long-term care market heterogeneity when considering interventions targeted at nursing home closure.
Details
- Title: Subtitle
- Effects of Nursing Home Closures on Occupancy and Finances of Nearby Nursing Homes
- Creators
- Lili Xu - University of IowaHari Sharma - University of IowaGeorge L. Wehby - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Medical care research and review, Vol.82(2), pp.153-164
- Publisher
- SAGE PUBLICATIONS INC
- DOI
- 10.1177/10775587241296182
- PMID
- 39560078
- ISSN
- 1077-5587
- eISSN
- 1552-6801
- Language
- English
- Electronic publication date
- 11/19/2024
- Date published
- 04/2025
- Academic Unit
- Preventive and Community Dentistry; Health Management and Policy; Economics
- Record Identifier
- 9984749759102771
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