Does long-term care subsidization reduce hospital admissions and utilization ? Joan Costa-Font, Sergi Jiménez-Martín, Cristina Vilaplana
By: Costa Font, Joan
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Contributor(s): Jiménez Martín, Sergi | Vilaplana Prieto, Cristina.
Material type: 
ArticlePublisher: 2018Subject(s): HOSPITALES | CUIDADOS DE LARGA DURACIÓN | FINANCIACION | ESPAÑA | MODELOS ECONOMETRICOSOnline resources: Click here to access online
In:
Journal of Health Economics n. 58, 2018, p. 43-66Summary: We use quasi-experimental evidence on the expansion of the public subsidization of long-term care toexamine the causal effect of a change in caregiving affordability on the delivery of hospital care. Morespecifically, we examine a reform that both introduced a new caregiving allowance and expanded theavailability of publicly funded home care services, on both hospital admissions (both on the internal andexternal margin) and length of stay. We find robust evidence of a reduction in both hospital admissionsand utilization among both those receiving a caregiving allowance and, albeit less intensely, among ben-eficiaries of publicly funded home care, which amounts to 11% of total healthcare costs. These effectswere stronger when regions had an operative regional health and social care coordination plan in place.Consistently, a subsequent reduction in the subsidy, five years after its implementation, is found to sig-nificantly attenuate such effects. We investigate a number of potential mechanisms, and show a numberof falsification and robustness checks.
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| OP 1587/2016/50-2 Quality standards versus nutritional taxes | OP 1587/2018/57 Journal of Health Economics | OP 1587/2018/58 Journal of Health Economics | OP 1587/2018/58-1 Does long-term care subsidization reduce hospital admissions and utilization ? | OP 1587/2018/59 Journal of Health Economics | OP 1587/2018/60 Journal of Health Economics | OP 1587/2018/61 Journal of Health Economics |
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Resumen.
We use quasi-experimental evidence on the expansion of the public subsidization of long-term care toexamine the causal effect of a change in caregiving affordability on the delivery of hospital care. Morespecifically, we examine a reform that both introduced a new caregiving allowance and expanded theavailability of publicly funded home care services, on both hospital admissions (both on the internal andexternal margin) and length of stay. We find robust evidence of a reduction in both hospital admissionsand utilization among both those receiving a caregiving allowance and, albeit less intensely, among ben-eficiaries of publicly funded home care, which amounts to 11% of total healthcare costs. These effectswere stronger when regions had an operative regional health and social care coordination plan in place.Consistently, a subsequent reduction in the subsidy, five years after its implementation, is found to sig-nificantly attenuate such effects. We investigate a number of potential mechanisms, and show a numberof falsification and robustness checks.
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