Long+term+care+-+Chp.+15


 * Long-Term Care**

Long-term care is a wide range of services that involve medical and non-medical related care to people who suffer from a chronic illness or disability. Instead of curing a medical problem, long-term care mainly enhances a person's quality of life. Most long-term care provides people with assisstance in activities of daily living, such as bathing, dressing, and using the restroom. The settings in which long-term care can take place vary greatly. They can range from family members providing care in their own home to services provided in a skilled nursing home. Home health care, meals on wheels, and adult day care are also examples.

The market structure of long-term care can best be described as monopolistic competition. Many substitute providers exist in the industry, and there are few barriers to entry.

Hospitals and physicians offer long-term care to a certain extent, but they mainly provide short-term treatment. Nursing homes are long-term care facilities because they focus on caring for a patient rather than curing them.

This year alone, about 9 million men and women age 65 and older will need some form of long-term care. By the year 2020, that number will increase to 12 million. This is due to baby boomers reaching retirement age. The increase in the elderly population will cause quite a significant increase in the demand for long-term care.

The delivery of long-term care has become very diverse. Now, there are many alternative care programs that do not involve the expense of a nursing home. In the future, it is likely that there will be increasing competition among individual providers of long-term care.


 * Questions**

1. Who is the second largest payer of nursing home services? a. Medicaid b. Medicare c. Consumers d. Private health insurers Answer: C

2. The increase in the elderly population will cause a. a decrease in demand for long-term care b. an increase in demand for long-term care c. an increase in the supply of long-term care Answer: B

3. What is likely to be the cause of increased competition among individual providers of long-term care? a. decreasing entry into the market b. diversity of delivery methods of long-term care c. increase in the elderly population Answer: B

4. What percent of people who enter a nursing home will stay for at least five years? a. 10% b. 15% c. 20% d. 25% Answer: A


 * Sources**

code Santerre, R.E., & Neun, S.P. (2007). //Health economics: Theories, insights, and industry studies// (4th ed.). Mason, OH: Thomson South-Western.

http://www.medicare.gov/LongTermCare/Static/Home.asp http://en/wikipedia.org/wiki/Long-term_care

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