Private-Pay Demand for Nursing Facilities in a Market with Excess Capacity (Author Abstract) (Report‪)‬

Introduction Using econometric methods, researchers have undertaken extensive studies of the nursing home industry in the United States during the last three decades. These studies have tended to emphasize the determinants of bed supply, notably the costs of providing long-term care while meeting regulatory requirements for quality and accessibility. In view of the predominant role of government as the 'agent' purchasing nursing-home services, researchers have given less attention to the private-pay demand for long-term care. Many of the papers on this segment of the industry focus on markets where there is a persistent shortage of beds. In contrast, this manuscript examines the private-pay demand for 2002 in the Texas nursing-home industry, a large market that is characterized by chronic excess capacity.