Table 2.

Mean Nursing Home Characteristics by Ultimate Ownership Category at Baseline (1998)

Facility Variables	Nursing Homes Bought by PI Firm†	All Other Nursing Homes‡	Other For-Profit Nursing Homes§	Other For-Profit Chain Nursing Homes¶
Total beds	120.4	119.1	115.4***	112.84***
Occupancy (%)	84.5	82.8***	81.8***	80.9***
Percent Medicaid (%)	63.2	64.7*	67.8***	68.1***
Percent Medicare (%)	13.0	9.6***	9.7***	10.2***
Registered nurses (hours per resident day)	0.45	0.50	0.48	0.46
Licensed practical nurses (hours per resident day)	0.76	0.79	0.79	0.81
Nurse aides (hours per resident day)	2.11	2.22*	2.13	2.09
Financial variables
Total operating expenses‡‡	126.15	125.75	123.26***	124.09*
Total revenue‡‡	164.24	144.26***	144.21***	145.60***
Current ratio ≥2 (%)	16.5	30.7***	32.9***	33.7***
Current ratio ≥1 and <2 (%)	28.5	34.8***	33.7***	30.5
Current ratio <1 (%)	55.0	34.5***	33.4***	35.8***
Negative operating margin (%)	25.8	57.0***	52.2***	54.7***
Operating margin >0% and ≤5%	20.1	23.1*	24.4***	22.9*
Operating margin >5%	54.1	19.9***	23.4***	22.4***
Debt servicing cost = 0 (%)‡‡	65.8	49.0***	46.1***	49.3***
Debt servicing cost >0 and <10 (%)	24.1	29.8***	31.8***	34.0***
Debt servicing cost ≥10 (%)	10.1	21.3***	22.1***	16.7***
N	1,382	10,415	7,469	4,964

Note. Significance denotes a statistically significant difference, using facilities purchased by a PI firm as the comparison group.

^†Includes all facilities subsequently bought by a private investment (PI) firm.

^‡Includes all facilities not bought by a PI firm.

^§Includes all for-profit facilities not bought by a PI firm.

^¶Includes all for-profit, chain facilities not bought by a PI firm.

^††Standardized per bed-day and adjusted to 2013 dollars.

^‡‡Debt servicing cost = 100 × (cash on hand/(debt interest + debt principal)).

^**Statistically significant at 5% level.

^***Statistically significant at 1% level.