Table 2.

Estimated Annual Variable Cost Function with Probability Weights (Dependent Variable: Log of Variable Cost)

Independent Variables	Coefficient	Robust Standard Error	p Value*
% direct care staff in formal teams
Linear	0.012	0.968	.99**
Squared	−2.332	7.626	.76**
Cubed	11.956	15.768	.49**
% of direct care staff in self-managed teams
Linear	−0.487	1.124	.67***
Squared	11.449	13.352	.39***
Cubed	−38.929	37.744	.30***
Beds	0.214 × 10−2	0.254 × 10−3	.00
Case-mix adjusted days/1,000
Linear	0.226	0.192 × 10−2	.00
Squared	−0.115 × 10−3	0.123 × 10−4	.00
Cubed	1.76 × 10−7	0.248 × 10−9	.00
Admissions	0.213 × 10−3	0.433 × 10−4	.00
Adult day care days/1,000	0.010	0.231 × 10−2	.00
Home health care visits/10,000	0.027	0.349 × 10−2	.00
Outpatient clinic visits/1,000	0.007	0.928 × 10−3	.00
Log management wages	0.170	0.058	.00
Log CNA wages	0.535	0.077	.00
Nonprofit facility	0.093	0.027	.00
Constant	12.620	0.225	.00

N=135.

R²=0.97.

^*Based on robust standard errors.

^**p value for the hypotheses that the linear, squared, and cubed terms are jointly significant is .004 (F_{3, 117}=4.77).

^***p value for the hypotheses that the linear, squared, and cubed terms are jointly significant is .426 (F_{3, 117}=0.94).