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Do Nonprofit And Government Nursing Homes Enter Unprofitable Markets?

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  • JEFFREY P. BALLOU

Abstract

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)

Suggested Citation

  • Jeffrey P. Ballou, 2008. "Do Nonprofit And Government Nursing Homes Enter Unprofitable Markets?," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 241-260, April.
    • Handle: RePEc:bla:ecinqu:v:46:y:2008:i:2:p:241-260
    DOI: 10.1111/j.1465-7295.2007.00059.x
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    Cited by:

    1. Iris Grant & Iris Kesternich & Johannes Van Biesebroeck, 2022. "Entry Decisions And Asymmetric Competition Between Non‐Profit And For‐Profit Homes In The Long‐Term Care Market," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(2), pages 631-670, May.

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    More about this item

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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