Abstract: Public reporting of quality information is designed to address information asymmetry in health care markets. Without public reporting, patients may have little information to help them differentiate quality among providers, giving providers little incentive to compete on quality. With public reporting, we predict that highly-ranked nursing homes will gain market share, especially those with excess capacity and in more competitive markets. We also expect that consumers with more education will be more responsive to public reporting. Using a four-year (2000-2003) panel dataset on nursing home post-acute care quality and market shares, we examine the relationship between report card scores and market share after the Centres for Medicare and Medicaid Services began publicly reporting nursing home quality information in 2002. We find that the relationship between reported quality and market share is positive and significant. Facilities with higher reported post-acute care quality had increases in market share after public reporting was initiated. Increases in market share among highly-ranked facilities were largest in markets with more nursing homes choices and in facilities with more open beds. Consumers with higher education were more responsive to the information.