Effects of For-Profit And Non-Profit Ownership Status For Residents of US. Nursing Homes: A Longitudinal Study
Professor of Strategy Will
Mitchell and PhD Student Aparna Venkatraman examine for-profit
conversion of the U.S. nursing home sector, focusing on the growth of for-profit
chains and the possible decline of independent nonprofit facilities. They
draw on longitudinal data during the 1990s, a period in which forprofit chains
and non-profit facilities competed in local markets throughout the country.
They address a series of questions concerning the relative cost and quality
performance of for-profit chains and independent non-profits, including both
cross-sectional comparisons and dynamic changes that occur through entry,
exit, and change of surviving non-profit organizations. At the core of the
study is the question of whether non-profit organizations are increasingly
emulating the performance levels of their for-profit competitors or whether
non-profits are differentiating within market segments that have higher quality
and higher cost. The study tracks several thousand nursing homes for seven
years. The results contribute both to a health policy debate and to our conceptual
understanding of the strategic characteristics of different organizational
forms.
Relevant working papers:
Comparing
Service and Quality Among Chain and Independent Nursing Homes During the
1990s