Nursing home expenditures have become a public policy concern primarily because the Medicaid program payes for approximately 50 percent. Medicaid makes health care available to individuals who otherwise could not afford it, by directly reimbursing nursing homes for Medicaid patient care....

Nursing homes participate simultaneously in a regulated and an unregulated market, and are required to supply the same quality of service to both markets. Specifically, nursing homes compete for patients who finance their care privately, and patients whose care is financed by the government's...

This paper analyzes the impact of the Medicaid patient subsidy and Certificate of Need (CON) cost containment programs on nursing home behavior.The analysis is complicated by the fact the both proprietary and "not for profit" nursing homes exist, and by the problem that qualityis not directly...