%0 Report %A Hackmann, Martin B. %A Pohl, Vincent %A Ziebarth, Nicolas R. %T Patient versus Provider Incentives in Long-Term Care %D 2023 %8 2023 May %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 16165 %U https://www.iza.org/index.php/publications/dp16165 %X How do patient and provider incentives affect the provision of long-term care? Our analysis of 551 thousand nursing home stays yields three main insights. First, Medicaid-covered residents prolong their stays instead of transitioning to community-based care due to limited cost-sharing. Second, when facility capacity binds, nursing homes shorten Medicaid stays to admit more profitable out-of-pocket private payers. Third, providers react more elastically to financial incentives than patients. Thus, targeting provider incentives through alternative payment models, such as episode-based reimbursement, is more effective than increasing patient cost-sharing in facilitating transitions to community-based care and generating long-term care savings. %K cost-sharing %K provider incentives %K patient incentives %K nursing homes %K long-term care %K episode-based reimbursement %K Medicaid