Too often individuals with long-term-care needs are placed in nursing
homes when they might well be better served at a lower level of care.
The uneven distribution of residents across settings stems from intera
cting factors of supply and demand: clinical need; lack of consensus a
mong physicians about what constitutes the best setting for their pati
ents; regulations restricting services in personal care homes. Three s
ets of clinical criteria identify nursing-home residents according to
their appropriateness for lower levels of care. Factors like cost and
ability of the patient's family to make informed decisions affect plac
ement as well. Policies for shifting patients to lower levels of care
muse be carefully designed in order to save costs and ensure that qual
ity of care is retained.