Does Investor Ownership of Nursing Homes Compromise the Quality of Care?

Two thirds of nursing homes are investor owned. This study examined whether investor ownership affects quality. We analyzed 1998 data from state inspections of 13,693 nursing facilities. We used a multivariate model and controlled for case mix, facility characteristics, and location. Investor-owned...

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Bibliographic Details
Published in:American journal of public health (1971) 2001-09, Vol.91 (9), p.1452-1455
Main Authors: Harrington, Charlene, Woolhandler, Steffie, Mullan, Joseph, Carrillo, Helen, Himmelstein, David U
Format: Article
Language:English
Subjects:
Activities of Daily Living
Alliances
Analysis of Variance
Bed Occupancy - statistics & numerical data
Biological and medical sciences
Dementia
General aspects
Health care delivery
Health Services Research
Health systems. Social services
Hospital Bed Capacity - statistics & numerical data
Humans
Insurance Coverage
Investment
Investments - statistics & numerical data
Investors
Licenses
Medicaid
Medical sciences
Medicare
Multivariate Analysis
Nurses
Nursing care
Nursing homes
Nursing Homes - organization & administration
Ownership
Ownership - statistics & numerical data
Patients
Personnel policies
Predictive Value of Tests
Pressure ulcers
Private Sector - organization & administration
Public health
Public health. Hygiene
Public health. Hygiene-occupational medicine
Public Sector - organization & administration
Quality of care
Quality of Health Care
Quality of Life
Quality of service
Reimbursement
United States
Urinary incontinence
USA
Workforce planning
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Summary:Two thirds of nursing homes are investor owned. This study examined whether investor ownership affects quality. We analyzed 1998 data from state inspections of 13,693 nursing facilities. We used a multivariate model and controlled for case mix, facility characteristics, and location. 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. Investor-owned nursing homes provide worse care and less nursing care than do not-for-profit or public homes.
ISSN:0090-0036
1541-0048
DOI:10.2105/AJPH.91.9.1452