Assisted Living Expansion and the Market for Nursing Home Care
Article first published online: 11 MAY 2012
© Health Research and Educational Trust
Health Services Research
Volume 47, Issue 6, pages 2296–2315, December 2012
How to Cite
Grabowski, D. C., Stevenson, D. G. and Cornell, P. Y. (2012), Assisted Living Expansion and the Market for Nursing Home Care. Health Services Research, 47: 2296–2315. doi: 10.1111/j.1475-6773.2012.01425.x
- Issue published online: 12 NOV 2012
- Article first published online: 11 MAY 2012
- Changes in Health Care Financing and Organization
- Robert Wood Johnson Foundation. Grant Number: 61511
- Assisted living;
- nursing homes;
To analyze the effect of market-level changes in assisted living supply on nursing home utilization and resident acuity.
Primary data on the supply of assisted living over time were collected from 13 states from 1993 through 2007 and merged with nursing home-level data from the Online Survey Certification and Reporting System and market-level information from the Area Resource File.
Least squares regression specification incorporating market and time-fixed effects.
A 10 percent increase in assisted living capacity led to a 1.4 percent decline in private-pay nursing home occupancy and a 0.2–0.6 percent increase in patient acuity.
Assisted living serves as a potential substitute for nursing home care for some healthier individuals with greater financial resources, suggesting implications for policy makers, providers, and consumers.