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Changes in Long-Term Care Markets: Assisted Living Supply and the Prevalence of Low-Care Residents in Nursing Homes.


ABSTRACT: OBJECTIVES:To assess the effect of changes in assisted living (AL) capacity within a market on prevalence of residents with low care needs in nursing homes. DESIGN:Retrospective, longitudinal analysis of nursing home markets. SETTING AND PARTICIPANTS:Twelve thousand two hundred fifity-one nursing homes in operation during 2007 and 2014. MEASUREMENTS:We analyzed the percentage of residents in a nursing home who qualified as low-care. For each nursing home, we constructed a market consisting of AL communities, Medicare beneficiaries, and competing nursing homes within a 15-mile radius. We estimated the effect of change in AL beds on prevalence of low-care residents using multivariate linear models with year and nursing home fixed effects. RESULTS:The supply of AL beds increased by an average 258 beds per nursing home market (standard deviation = 591) during the study period. The prevalence of low-care residents decreased from an average of 13.0% (median 10.5%) to 12.2% (median 9.5%). In adjusted models, a 100-bed increase in AL supply was associated with a decrease in low-care residents of 0.041 percentage points (P = .026), controlling for changes in market and nursing home characteristics, county demographics, and year and nursing home fixed effects. In markets with a high percentage of its Medicare beneficiaries (?14%) dual eligible for Medicaid, the effect of AL is stronger, with a 0.066-percentage point decrease per 100 AL beds (P = .026) vs a 0.016-percentage point decrease in low-duals markets (P = .48). CONCLUSIONS AND IMPLICATIONS:Our analysis suggests that some of the growth in AL capacity serves as a substitute for nursing homes for patients with low care needs. Furthermore, the effects are concentrated in markets with an above-average proportion of beneficiaries with dual Medicaid eligibility.

SUBMITTER: Cornell PY 

PROVIDER: S-EPMC7396306 | biostudies-literature | 2020 Aug

REPOSITORIES: biostudies-literature

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Changes in Long-Term Care Markets: Assisted Living Supply and the Prevalence of Low-Care Residents in Nursing Homes.

Cornell Portia Y PY   Zhang Wenhan W   Thomas Kali S KS  

Journal of the American Medical Directors Association 20200227 8


<h4>Objectives</h4>To assess the effect of changes in assisted living (AL) capacity within a market on prevalence of residents with low care needs in nursing homes.<h4>Design</h4>Retrospective, longitudinal analysis of nursing home markets.<h4>Setting and participants</h4>Twelve thousand two hundred fifity-one nursing homes in operation during 2007 and 2014.<h4>Measurements</h4>We analyzed the percentage of residents in a nursing home who qualified as low-care. For each nursing home, we construc  ...[more]

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