Table 1.

The Results of the First-Stage Regressions for Suspected Endogenous Variables in the 2SLS

	Coefficients Under Each Dependent Variable Model
	Care-Related Process Quality Variables			Patient Day Variables
Explanatory variables	(OLS) Catheterization	(OLS) Restraint	(Tobit) Drug error	(OLS) Medicare	(Tobit) Medicaid	(OLS) Private
Intercept	13.17‡	31.48‡	0.86‡	−738.70†	9.49‡	5539.91 †
County-level variables
%Population 65+	19.75	8.54	5.07	5,592.93	3.66‡	−53,031.00*
%Population 75+	−1.48	−46.68	−13.75	29,288.00 †	−21.81‡	137,517.00
%Population 84+	−255.46‡	−86.10	−5.87	−125,661.00‡	44.21‡	39,136.00
Income	8.12E −5†	−3.25E −5	7.15 −6	0.05‡	−7.13E −6‡	0.09
Poverty	0.005*	−0.003	0.002‡	0.78	−0.0004 †	−9.84*
Facility-level variables
Number of beds	0.028‡	−0.01	−0.003‡	4.56‡	0.001‡	37.07‡
Number of certified beds	−0.04‡	0.027‡	0.002 †	13.08‡	0.005‡	105.14‡
Profit ownership	−3.83‡	−4.63‡	0.28
Nonprofit ownership	−3.48‡	−5.21‡	0.47‡
State or Region-level variables
Combination	−2.09‡	−12.24‡	−0.04
Facility-specific PPS	−1.74 †	−5.02‡	0.12
Class PPS	0.20	1.13	0.51 †
New England	−1.84‡	5.33‡	0.58‡
Mid-Atlantic	−1.69 †	−0.22	0.56‡
South Atlantic	0.48	3.70‡	0.37‡
East North Central	1.34 †	5.28‡	0.19*
East South Central	2.18‡	6.82‡	0.11
West North Central	0.73	2.19	0.16
West South Central	7.08‡	1.07	0.37‡
Mountain	−0.03	1.86	0.49‡
R2	0.10	0.08		0.25		0.23
Likelihood Ratio			99.94‡		1,776.14‡
F-statistics	27.48‡	22.36‡		240.22‡		215.47‡

Note: The above statistical results of coefficients come from t-test for the two OLS models and from chi-square test for the Tobit model.

^*p <0.10.

^†p <0.05.

^‡p <0.01.