Testing for Ownership Mix Efficiency: The Case of the Nursing Home Industry

23 Pages Posted: 8 Mar 2005

See all articles by Rexford E. Santerre

Rexford E. Santerre

University of Connecticut - Department of Finance

John A. Vernon

University of North Carolina (UNC) at Chapel Hill; National Bureau of Economic Research (NBER)

Date Written: February 2005

Abstract

This paper offers an empirical test of ownership mix efficiency in the U.S. nursing home industry. We test to compare the benefits of quality assurance with the costs from the attenuation of property rights that result from an increased presence of nonprofit organizations. The empirical results suggest that too few nonprofit nursing homes may exist in the typical market area of the U.S. The policy implication is that more quality of care per dollar might be obtained by attracting a greater percentage of nonprofit nursing homes into most market areas.

Suggested Citation

Santerre, Rexford E. and Vernon, John A., Testing for Ownership Mix Efficiency: The Case of the Nursing Home Industry (February 2005). NBER Working Paper No. w11115. Available at SSRN: https://ssrn.com/abstract=663512

Rexford E. Santerre

University of Connecticut - Department of Finance ( email )

School of Business
2100 Hillside Road
Storrs, CT 06269
United States

John A. Vernon (Contact Author)

University of North Carolina (UNC) at Chapel Hill ( email )

102 Ridge Road
Chapel Hill, NC NC 27514
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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