This paper suggests a new focus for government policy in the providing of Medicaid services. To put it simply, the government needs to provide incentives (and sanctions) that make the business of caring for the elderly profitable to proprietary nursing home. Although "profit" and "quality care" are strange bedfellows, the government must adapt the Medicaid system to keeping them close (i.e., maintaining a positive relationship between profit and quality care) .
Balk, Walter; Muscarella, Maria; Rosenthal, Jean; and Sanders, Garrett, "13. Long Term Care: Medicaid Reimbursement Does High Cost Yield High Quality?" (1980). Public Administration Manuscripts. 13.