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. Author manuscript; available in PMC: 2016 May 1.
Published in final edited form as: J Health Econ. 2015 Feb 19;41:133–147. doi: 10.1016/j.jhealeco.2015.02.002

Appendix Table 3.

Quality Results – Rural nursing homes

Standard DID Two-step DID Two-step FGLS
(1) (2) (3)
A. Dependent variable: pressure ulcer worsening rate
Wage pass-through −0.00325 (0.0172) 0.00942 (0.0230) 0.00968 (0.0205)
State minimum nursing hours −0.00319 (0.0281) 0.00443 (0.0153) 0.00337 (0.0138)
Medicaid payment rate −0.00654 (0.00679) −0.00686 (0.0111) −0.00679 (0.00968)
Case-mix reimbursement −0.000922 (0.0180) 0.00787 (0.0302) 0.00581 (0.0270)
AR(1) coefficient 0.01
No. of observations 4,244 119 118
B. Dependent variable: ADL decline rate
Wage pass-through 0.00313 (0.0132) −0.0139 (0.0235) −0.0131 (0.0217)
State minimum nursing hours 0.0224 (0.0220) 0.00557 (0.0222) 0.00478 (0.0196)
Medicaid payment rate 0.00395 (0.00566) −0.00116 (0.0121) −0.00108 (0.0106)
Case-mix reimbursement −0.00916 (0.0214) 0.0258 (0.0406) 0.0233 (0.0366)
AR(1) coefficient −0.03
No. of observations 3,976 118 116
C. Dependent variable: persistent pain rate
Wage pass-through 0.00796 (0.0284) 0.0544 (0.0697) 0.00396 (0.0441)
State minimum nursing hours 0.00100 (0.0170) −0.0421 (0.0347) −0.0317 (0.0222)
Medicaid payment rate −0.00494 (0.0118) 0.000348 (0.0201) 0.000401 (0.0181)
Case-mix reimbursement 0.0505 (0.0384) 0.107 (0.103) 0.153 (0.117)
AR(1) coefficient −0.65
No. of observations 4,185 119 118

Notes: All specifications include facility and year fixed effects. All facility and market variables listed in Table 2 are included in the standard DD procedure and the first-step of the two-step procedures. Columns (1) to (3) use standard errors clustered by state and column (4) uses standard errors jack-knifed at the state level. Medicaid repayment rate is in $10 increments.

*, **, and ***

indicate significance at the 10%, 5%, and 1 % level, respectively.