The impact of ownership type on nursing home outcomes

Health Econ. 1998 Nov;7(7):639-53. doi: 10.1002/(sici)1099-1050(1998110)7:7<639::aid-hec373>;2-0.


This paper examines the sorting of residents between for-profit and nonprofit nursing homes and the health outcomes of those residents conditional on ownership type. Using data from the 1987 National Medical Expenditure Survey, we find evidence of systematic sorting of residents by ownership type, and significant effects of ownership type on outcomes. These results are broadly consistent with the hypothesis that for-profit and nonprofit homes exploit their informational advantages to differing extents in a market characterized by asymmetric information.

Publication types

  • Comparative Study

MeSH terms

  • Aged
  • Female
  • Health Care Surveys
  • Health Facilities, Proprietary / organization & administration*
  • Humans
  • Male
  • Marketing of Health Services
  • Models, Econometric*
  • Nursing Homes / organization & administration*
  • Outcome Assessment, Health Care*
  • Ownership / classification*
  • Patient Acceptance of Health Care / statistics & numerical data*
  • Quality of Health Care
  • United States