Ownership conversion and closure in the nursing home industry
Article first published online: 4 JUN 2010
Copyright © 2010 John Wiley & Sons, Ltd.
Volume 20, Issue 6, pages 631–644, June 2011
How to Cite
Bowblis, J. R. (2011), Ownership conversion and closure in the nursing home industry. Health Econ., 20: 631–644. doi: 10.1002/hec.1618
- Issue published online: 31 MAR 2011
- Article first published online: 4 JUN 2010
- Manuscript Accepted: 13 APR 2010
- Manuscript Revised: 26 MAR 2010
- Manuscript Received: 16 OCT 2009
- nursing homes
Ownership conversions and closures in the nursing home literature have largely been treated as separate issues. This paper studies the predictors of nursing home ownership conversions and closure in a common framework after the implementation of the Prospective Payment System in Medicare skilled nursing facilities. The switch in reimbursement regimes impacted facilities with greater exposure to Medicare and lower efficiency. Facilities that faced greater financial difficulty were more likely to be involved in an ownership conversion or closure, but after controlling for other factors the effect of exposure to Medicare is small. Further, factors that predict conversion were found to vary between not-for-profit and for-profit facilities, while factors that predict closure were the same for each ownership type. Copyright © 2010 John Wiley & Sons, Ltd.