Profit incentives and technical efficiency in the production of nursing home care

In recent years, nursing home care expenditures have approached 1% of GNP. Their growth is a major contributor to the escalating costs of health care. In this article, we analyze a sample of nursing homes from Wisconsin to determine the characteristics of the efficiently operated nursing homes. Data...

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Veröffentlicht in:The review of economics and statistics 1989-11, Vol.71 (4), p.586-594
Hauptverfasser: Nyman, J.A, Bricker, D.L
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description In recent years, nursing home care expenditures have approached 1% of GNP. Their growth is a major contributor to the escalating costs of health care. In this article, we analyze a sample of nursing homes from Wisconsin to determine the characteristics of the efficiently operated nursing homes. Data envelopment analysis is used to calculate efficiency scores for the various nursing homes in the sample. We then use regression analysis to investigate the determinants of efficiency, holding constant the characteristics of the output. We find that for-profit firms have significantly higher efficiency scores.
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subjects administrative management
Cost control
Cost efficiency
Cost functions
data analysis
Data envelopment analysis
Efficiency
Efficiency metrics
Expenditures
GNP
Gross National Product
Health care costs
Health care expenditures
Health care industry
Hospital beds
Linear programming
Medicaid
Minimization of cost
Nonprofit hospitals
Nonprofit organizations
Nursing homes
Production efficiency
Profit
profitability
quality
Regression analysis
Studies
Variables
title Profit incentives and technical efficiency in the production of nursing home care
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