Dying or Lying? For-Profit Hospices and End-of-Life Care

Dying or Lying? For-Profit Hospices and End-of-Life Care

The Medicare hospice program is intended to provide palliative care to terminal patients, but patients with long stays in hospice are highly profitable, motivating concerns about overuse among the Alzheimer's and Dementia (ADRD) population in the rapidly growing for-profit sector. We provide th...

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Veröffentlicht in:The American economic review 2025-01, Vol.115 (1), p.263-294
Hauptverfasser: Gruber, Jonathan, Howard, David H., Leder-Luis, Jetson, Caputi, Theodore L.
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container_title The American economic review
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creator Gruber, Jonathan
Howard, David H.
Leder-Luis, Jetson
Caputi, Theodore L.
description The Medicare hospice program is intended to provide palliative care to terminal patients, but patients with long stays in hospice are highly profitable, motivating concerns about overuse among the Alzheimer's and Dementia (ADRD) population in the rapidly growing for-profit sector. We provide the first causal estimates of the effect of for-profit hospice on patient spending using the entry of for-profit hospices over 20 years. We find hospice has saved money for Medicare by offsetting other expensive care among ADRD patients. As a result, policies limiting hospice use including revenue caps and antifraud lawsuits are distortionary and deter potentially cost-saving admissions. (JEL H51, I11, I12, I18, J14, L84)
doi_str_mv 10.1257/aer.20230328
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title Dying or Lying? For-Profit Hospices and End-of-Life Care
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