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Does investor ownership of nursing homes compromise the quality of care?

Author

Listed:
  • Harrington, C.
  • Woolhandler, S.
  • Mullan, J.
  • Carrillo, H.
  • Himmelstein, D.U.

Abstract

Objectives. Two thirds of nursing homes are investor owned. This study examined whether investor ownership affects quality. Methods. We analyzed 1998 data from state inspections of 13693 nursing facilities. We used a multivariate model and controlled for case mix, facility characteristics, and location. Results. Investor-owned facilities averaged 5.89 deficiencies per home, 46.5% higher than nonprofit facilities and 43.0% higher than public facilities. In multivariate analysis, investor ownership predicted 0.679 additional deficiencies per home; chain ownership predicted an additional 0.633 deficiencies. Nurse staffing was lower at investor-owned nursing homes. Conclusions. Investor-owned nursing homes provide worse care and less nursing care than do not-for-profit or public homes.

Suggested Citation

  • Harrington, C. & Woolhandler, S. & Mullan, J. & Carrillo, H. & Himmelstein, D.U., 2001. "Does investor ownership of nursing homes compromise the quality of care?," American Journal of Public Health, American Public Health Association, vol. 91(9), pages 1452-1455.
    • Handle: RePEc:aph:ajpbhl:2001:91:9:1452-1455_3
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    Cited by:

    1. Laura Di Giorgio & Massimo Filippini & Giuliano Masiero, 2014. "The relationship between costs and quality in nonprofit nursing homes," IdEP Economic Papers 1402, USI Università della Svizzera italiana.
    2. Federica Angeli & Hans Maarse, 2016. "Private capital investments in health care provision through mergers and acquisitions: from long-term to acute care," International Journal of Health Planning and Management, Wiley Blackwell, vol. 31(4), pages 290-301, October.
    3. James A. Brickley & Susan F. Lu & Gerard J. Wedig, 2022. "Are firms with ‘deep pockets’ more responsive to tort liability? Evidence from nursing homes," Health Economics, John Wiley & Sons, Ltd., vol. 31(8), pages 1590-1617, August.
    4. Samantha Plummer, 2018. "Emotion management, institutional change, and the spatial arrangement of care at a psychiatric residential treatment facility," Palgrave Communications, Palgrave Macmillan, vol. 4(1), pages 1-10, December.
    5. Grabowski, David C. & Hirth, Richard A., 2003. "Competitive spillovers across non-profit and for-profit nursing homes," Journal of Health Economics, Elsevier, vol. 22(1), pages 1-22, January.
    6. L. Di Giorgio & M. Filippini & G. Masiero, 2016. "Is higher nursing home quality more costly?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(8), pages 1011-1026, November.
    7. Berta, Whitney & Laporte, Audrey & Zarnett, Dara & Valdmanis, Vivian & Anderson, Geoffrey, 2006. "A pan-Canadian perspective on institutional long-term care," Health Policy, Elsevier, vol. 79(2-3), pages 175-194, December.
    8. Pablo Villalobos Dintrans, 2018. "Do long-term care services match population needs? A spatial analysis of nursing homes in Chile," PLOS ONE, Public Library of Science, vol. 13(6), pages 1-15, June.
    9. Anna A. Amirkhanyan & Hyun Joon Kim & Kristina T. Lambright, 2008. "Does the public sector outperform the nonprofit and for-profit sectors? Evidence from a national panel study on nursing home quality and access," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(2), pages 326-353.
    10. Eric Christensen & Richard Arnould, 2005. "The Impact of Asymmetric Information and Ownership on Nursing Home Access," International Journal of Health Economics and Management, Springer, vol. 5(3), pages 273-297, September.
    11. Paul, Justin & Sahadev, Sunil, 2018. "Service failure and problems: Internal marketing solutions for facing the future," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 304-311.
    12. Jeongyoung Park & Rachel M. Werner, 2011. "Changes in the relationship between nursing home financial performance and quality of care under public reporting," Health Economics, John Wiley & Sons, Ltd., vol. 20(7), pages 783-801, July.
    13. Martin, Cécile, 2014. "Concurrence, prix et qualité de la prise en charge en EHPAD en France : Analyses micro-économétriques," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/13712 edited by Dormont, Brigitte.

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