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DO NONPROFIT AND GOVERNMENT NURSING HOMES ENTER UNPROFITABLE MARKETS?
Author(s) -
BALLOU JEFFREY P.
Publication year - 2008
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.2007.00059.x
Subject(s) - nursing homes , government (linguistics) , business , long term care , for profit , profit (economics) , economics , public economics , nursing , finance , medicine , microeconomics , linguistics , philosophy
Using data from markets in the rural United States, this study addresses whether nonprofit and government nursing facilities locate in markets that for‐profit firms cannot profitably enter, thereby expanding access to nursing care to populations that would not otherwise be served. The results indicate that while nonprofit and for‐profit nursing homes typically enter similar markets, government nursing homes are more likely to enter markets that have small populations generally and too few elderly residents to be profitable for for‐profits. The results have implications for the efficient provision of access to long‐term care for isolated populations and other underserved groups. (JEL L10, L20, I11)