Explaining Differences in Remuneration Rates of Nursing Homes in Germany

摘要: Remuneration rates of German nursing homes are prospectively negotiated between long-term care insurance (LTCI) and social assistance on the one side other. They differ considerably across regions while there is no evidence for substantial differences in provision. This article explains remuneration by observable characteristics home, its residents region with a special focus largest federal state North Rhine Westphalia, which most expensive located. We use data from Federal Statistical Office 2005 all that offer full-time residential elderly. find can partly be explained exogenous factors. Controls residents, district explain roughly 30 % price difference; 40 ascribed to regionally different kind negotiation LTCI. Thirty percent raw difference remains unexplained characteristics.