Gemeinhardt G; Academy for Health Services Research and Health Policy. Meeting.

Abstr Acad Health Serv Res Health Policy Meet. 2001; 18: 129.

Department of Healthcare Administration, Texas Woman's University, 1130 M.D. Anderson Blvd., HMJ 714, Houston, TX 77030, Phone: (713) 685-4777, Fax: (713) 685-4611, E-mail: ggemeinhardt@apqc.org

RESEARCH OBJECTIVE: The nature of the characteristics which some argue distinguish nonprofits from profit-oriented organizations and the impact that these characteristics have on organizational performance is based largely on assumption, rather than empirical findings. This paper is empirically tests for the presence of the characteristics presumed to distinguish nonprofit nursing homes from proprietary entities and examines their impact on financial and non-financial performance.STUDY DESIGN: This study used Texas Department of Health and Human Service data for 911 nursing homes certified for Medicaid funding. In addition, survey data from 91 nonprofit and for-profit nursing homes was used to test the hypotheses in this study.POPULATION STUDIED: Medicaid-regulated for-profit and nonprofit nursing homes in the state of Texas.PRINCIPAL FINDINGS: The results support the hypotheses that certain characteristics exist to a greater extent in nonprofit nursing homes than in for-profit nursing homes and these characteristics influence the financial and non-financial performance of nonprofit nursing homes. In particular, professionalism, sources of funds and religious affiliation influenced financial performance; these variables also appear to be related to a higher quality of care in nonprofit facilities as measured by level of reported allegations and cited deficiencies.CONCLUSIONS: The findings of this study showed that certain characteristics of nonprofit nursing homes in Texas distinguished them from for-profit nursing homes. As found among general hospitals, psychiatric facilities, child care centers and home health agencies, Texas nursing homes show significant differences by type of ownership. This study provided an empirical test of the characteristics that have been presumed to distinguish nonprofit organization from for-profit organizations. This study went beyond examining the impact of payer and client mix on performance and identified constructs that appear to be more uniquely characteristic of not-for profits: pluralistic goals, diverse sources of funds, degree of professionalism, and the size and term limits of the boards of directors.IMPLICATIONS FOR POLICY, DELIVERY, OR PRACTICE: Nonprofit nursing homes, particularly those with a religious affiliation that cater to the private payer appear to provide a higher quality of case for the higher costs that are being incurred in those facilities. On the other hand, for the taxpayers supporting the Medicaid program, the lack of quality of care being received should be of concern. This study, consistent with other research, found that the quality of care decreased as the proportion of Medicaid funding increased.

Publication Types:

• Meeting Abstracts

Keywords:

• Child
• Costs and Cost Analysis
• Data Collection
• Health Facilities, Proprietary
• Humans
• Medicaid
• Nursing Homes
• Organizations, Nonprofit
• Ownership
• Texas
• economics
• hsrmtgs

Other ID:

• GWHSR0001737

UI: 102273413

From Meeting Abstracts