Skip to main content
. 2007 Jun;42(3 Pt 1):1105–1129. doi: 10.1111/j.1475-6773.2006.00641.x

Table 3.

Stage 1—OLS Reduced-Form Equations: Medicaid Rates, Resident Case Mix, RN Hours, and Total Nursing Hours (Coefficients with Standard Error in Parentheses)

Exogenous Factors State Average Medicaid Reimbursement Rate Resident Case Mix RN Hours Total Nursing Hours RN Hours without Instrumental Variables*** Total Hours without Instrumental Variables***
Facility resources
 RN pay rate per hour 5.890** 0.055** 0.001 0.039** −0.003 0.053**
(0.101) (0.006) (0.004) (0.008) (0.004) (0.008)
 Proportion Medicaid residents 0.014* −0.0002 −0.003** −0.005** −0.003** −0.005**
(0.005) (0.0003) (0.0002) (0.0004) (0.0002) (0.0004)
 Medicaid case-mix reimbursement 3.932** 0.008 0.016 −0.150** 0.008 −0.134**
(0.261) (0.015) (0.011) (0.021) (0.010) (0.020)
 Medicaid prospective reimbursement method −15.936** −0.060** −0.044** −0.110**
(0.251) (0.014) (0.010) (0.020)
 State RN minimum 28.978** 0.111** 0.247** 0.562** 0.232** 0.703**
 Staffing standard (0.726) (0.041) (0.029) (0.057) (0.028) (0.054)
 Medicare SNF −0.105** −0.007** 0.001* −0.002** 0.001** −0.005**
 Reimbursement rate (0.009) (0.001) (0.0004) (0.001) (0.0003) (0.001)
Facility characteristics
 For-profit facility −1.588** −0.067** −0.147** −0.358** −0.148** −0.359**
(0.219) (0.012) (0.009) (0.017) (0.009) (0.017)
 Multifacility system −1.714** −0.005 −0.008 −0.132** −0.007 −0.134**
 Member (0.198) (0.011) (0.008) (0.016) (0.008) (0.016)
 Hospital-based 0.186 0.010 0.024 0.054* 0.024 0.058*
(0.316) (0.018) (0.013) (0.025) (0.013) (0.025)
 Number of facility beds 0.010** 0.0001 −0.001** −0.001** −0.001** −0.001**
(0.002) (0.0001) (0.0001) (0.0001) (0.0001) (0.0001)
 Dual/distinct part 1.917** 0.266** 0.099** 0.201** 0.100** 0.219**
 Certification (0.332) (0.019) (0.014) (0.026) (0.013) (0.027)
 SNF certification 0.158* −0.080* 1.937** 2.911** 1.939** 2.927**
(0.627) (0.035) (0.025) (0.050) (0.025) (0.050)
County demographic economic variables
 Proportion aged 65 and older 2.941** −0.038** 0.002 0.024** 0.006* 0.020**
(0.070) (0.004) (0.003) (0.006) (0.003) (0.005)
 Percentage females in labor force −0.682** −0.014** −0.001 −0.007** −0.0002 −0.003
(0.035) (0.002) (0.001) (0.003) (0.001) (0.003)
 Personal income per capita 1.661** −0.009** 0.015** −0.002 0.017** −0.001
(0.053) (0.003) (0.002) (0.004) (0.002) (0.004)
 Percent metropolitan −0.338** 0.003** −0.003** −0.005** −0.004** −0.003**
 Population (0.012) (0.001) (0.001) (0.001) (0.001) (0.001)
Political variables
 Democratic governor −6.647** 0.085** 0.025** −0.129**
(0.235) (0.013) (0.010) (0.018)
 Political party split −4.455** −0.200** 0.022* 0.050* 0.021* −0.018
(0.270) (0.015) (0.011) (0.021) (0.010) (0.020)
Market factors
 NF Herfindahl (facility concentration) 0.279 −0.134** −0.045* −0.059 −0.042* −0.051
(0.469) (0.026) (0.019) (0.037) (0.019) (0.037)
 Percent excess NF beds in the county −0.062** −0.003** 0.001 0.007** 0.001 0.006**
(0.014) (0.001) (0.001) (0.001) (0.001) (0.001)
 Nursing home beds per 1,000 age 65+ −0.094** −0.011** −0.002** −0.014** −0.003** −0.014**
(0.011) (0.001) (0.0004) (0.001) (0.0004) (0.001)
 Hospital beds per 1,000 population −0.037 0.0001 0.002 0.007* 0.001 0.008**
(0.038) (0.002) (0.002) (0.003) (0.002) (0.003)
 Intercept −12.609** 8.249** 0.340** 4.699** 0.363** 4.804**
(2.561) (0.144) (0.104) (0.202) (0.104) (0.202)
R2 0.771** 0.162** 0.560** 0.477** 0.559** 0.474**
Mean= 117.16 5.82 0.66 3.62 0.66 3.62
N  = 14,256; df = 22 22 22 22 20 20

Shaded areas show omitted variables from the model.

*

Significant at the .05 level.

**

Significant at the .01 level.

***

Instrumental variables are excluded from the OLS regression.

RN, registered nurse; SNF, skilled nursing care; NF, nursing facility.