Nursing Home Quality and Financial Performance: Does the Racial Composition of Residents Matter?
Article first published online: 26 JUN 2013
© Health Research and Educational Trust
Health Services Research
Volume 48, Issue 6pt1, pages 2060–2080, December 2013
How to Cite
Chisholm, L., Weech-Maldonado, R., Laberge, A., Lin, F.-C. and Hyer, K. (2013), Nursing Home Quality and Financial Performance: Does the Racial Composition of Residents Matter?. Health Services Research, 48: 2060–2080. doi: 10.1111/1475-6773.12079
- Issue published online: 26 NOV 2013
- Article first published online: 26 JUN 2013
- Cecil G. Sheps Center for Health Service Research University of North Carolina. Grant Number: 5T32HS000032
- UAB Center of Excellence Comparative Effectiveness for Eliminating Disparities
- NIH/NCMHD. Grant Number: 3P60MD000502-08S1
- Deep South Resource Center on Minority Aging National Institute on Aging. Grant Number: P30AG031054
- Nursing homes;
- racial composition;
- financial performance;
To examine the effects of the racial composition of residents on nursing homes’ financial and quality performance. The study examined Medicare and Medicaid-certified nursing homes across the United States that submitted Medicare cost reports between the years 1999 and 2004 (11,472 average per year).
Data were obtained from the Minimum Data Set, the On-Line Survey Certification and Reporting, Medicare Cost Reports, and the Area Resource File.
Panel data regression with random intercepts and negative binomial regression were conducted with state and year fixed effects.
Financial and quality performance differed between nursing homes with high proportions of black residents and nursing homes with no or medium proportions of black residents. Nursing homes with no black residents had higher revenues and higher operating margins and total profit margins and they exhibited better processes and outcomes than nursing homes with high proportions of black residents.
Nursing homes’ financial viability and quality of care are influenced by the racial composition of residents. Policy makers should consider initiatives to improve both the financial and quality performance of nursing homes serving predominantly black residents.