Table 5. Explanatory power (R²) of case mix, quality, and facility characteristics in nursing and total cost per patient day regressions: 1980.

Independent variables	Explanatory power (R2)
	65 freestanding nursing homes	74 freestanding and hospital-based nursing homes
Nursing cost per patient day
Case mix	.33	.43
Case mix and quality	.41	.45
Case mix, quality, and facility characteristics	.58	.62
Facility characteristics alone	.41	.41
Total cost per patient day
Case mix	.25	.45
Case mix and quality	.29	.46
Case mix, quality, and facility characteristics	.59	.64
Facility characteristics alone	.45	.42

NOTES: The case-mix variables are based on the percents of patients with urinary tract infection, mental retardation and/or developmental disabilities, dependent in toileting, and digestive system disorders. The quality variables are a facility-level quality Z-score, by problem for subcutaneous and/or complicated skin condition, and immobility. The facility characteristic variables are hospital-based, nonprofit, percent of Medicaid patients, and percent nursing pool use (N = 74 freestanding and hospital-based only).

SOURCES: University of Colorado Health Sciences Center, Center for Health Services Research: Primary Study Data, 1980.

Colorado Department of Social Services, Denver, Colorado: Medicaid Cost Reports, 1980.