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The eldercare landscape: Evidence from California

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  • Daniel P. McMillen
  • Elizabeth T. Powers

Abstract

Although the literature suggests that nursing home location is instrumental to the efficient functioning of the long‐term care industry, there has been little research directly focused on the spatial distribution of nursing homes. We discuss factors that may influence nursing home location choice, emphasizing agglomeration economies around hospitals. We estimate econometric models of location using information on all freestanding, MediCal‐licensed long‐term care facilities in the state of California. We find that nursing homes are more likely to locate in the same Census tract as a hospital and are more likely to locate in tracts nearer to those containing a hospital.

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  • Daniel P. McMillen & Elizabeth T. Powers, 2017. "The eldercare landscape: Evidence from California," Health Economics, John Wiley & Sons, Ltd., vol. 26(S2), pages 139-157, September.
    • Handle: RePEc:wly:hlthec:v:26:y:2017:i:s2:p:139-157
    DOI: 10.1002/hec.3567
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    1. Bilotkach, Volodymyr & Braakmann, Nils & Gonzalo-Almorox, Eduardo & Wildman, John, 2017. "The effect of house prices on the long-term care market: Evidence from England," MPRA Paper 81987, University Library of Munich, Germany.

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