Ruhr Economic Papers

Ruhr Economic Papers #470

Nursing Home Prices and Quality of Care - Evidence from Administrative Data

by Arndt R. Reichert and Magdalena Stroka

RUB, RWI, 02/2014, 30 S./p., 8 Euro, ISBN 978-3-86788-530-0 DOI: 10.4419/86788530



There is widespread concern about the quality of care in nursing homes. Based on administrative data of a large health insurance fund, we investigate whether nursing home prices affect relevant quality of care indicators at the resident level. Our results indicate a significantly negative price effect on inappropriate and psychotropic medication. In contrast, we find no evidence for fewer painful physical sufferings for residents of nursing homes with higher prices.

JEL-Classification: I10

Keywords: Quality of care; nursing homes; inappropriate medication; psychotropic drugs; panel data analysis