Table 7.
DD and FGLS Estimation Results on Samples Stratified into Quartiles by Average Quality
| 1st Quartile | 2nd Quartile | 3rd Quartile | 4th Quartile | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Standard DID |
Two-step DID |
Two-step FGLS |
Standard DID |
Two-step DID |
Two-step FGLS |
Standard DID |
Two-step DID |
Two-step FGLS |
Standard DID |
Two-step DID |
Two-step FGLS |
|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | |
| Dependent variable: Log CNA hours | ||||||||||||
| Wage pass-through | 0.0149** (0.00734) | 0.0195** (0.00789) | 0.0272*** (0.00780) | 0.00729 (0.00872) | 0.0216* (0.0123) | 0.0284** (0.0141) | −0.00117 (0.00905) | −0.0157 (0.0141) | −0.0183 (0.0146) | 0.00804 (0.0113) | 0.00896 (0.00927) | 0.00698 (0.00980) |
| State minimum nursing hours | 0.0298*** (0.00541) | 0.0288* (0.0160) | 0.0230 (0.0184) | 0.0384*** (0.00537) | −0.00218 (0.0223) | −0.00660 (0.0201) | 0.0420*** (0.00361) | 0.0123 (0.0204) | 0.0145 (0.0148) | 0.0381*** (0.00461) | 0.0247** (0.00970) | 0.0198** (0.00923) |
| Medicaid payment rate | 0.00371 (0.00486) | −0.00634 (0.0129) | −0.00676 (0.00797) | 0.00198 (0.00222) | 0.00373 (0.00225) | 0.00331* (0.00176) | 0.00146 (0.00238) | −0.000777 (0.00334) | −0.00172 (0.00308) | 0.00376 (0.00338) | 0.000628 (0.00525) | 0.000976 (0.00408) |
| Case-mix reimbursement | 0.0277 (0.0173) | 0.0307 (0.0184) | 0.0251* (0.0148) | 0.000685 (0.0139) | −0.00825 (0.0180) | −0.0156 (0.0174) | 0.00655 (0.00885) | 0.00346 (0.0118) | 0.00886 (0.0106) | −0.00463 (0.0150) | 0.0166 (0.0234) | 0.0229 (0.0238) |
| AR(1) coefficient | 0.65 | 0.31 | 0.28 | 0.38 | ||||||||
| No. of obs. | 12,218 | 288 | 288 | 13,263 | 288 | 288 | 13,524 | 288 | 288 | 13,131 | 288 | 288 |
| Dependent variable: pressure ulcer worsening rate | ||||||||||||
| Wage pass-through | 0.00114 (0.00768) | 0.00773 (0.0104) | 0.00712 (0.0110) | −0.0119** (0.00472) | −0.0235* (0.0127) | −0.0254* (0.0129) | −0.00688 (0.00549) | −0.0205** (0.00862) | −0.0181** (0.00748) | −0.0141*** (0.00389) | 0.00561 (0.0162) | 0.00370 (0.0148) |
| State minimum nursing hours | 0.00111 (0.00386) | −0.00118 (0.00647) | −0.00721 (0.00636) | 0.00567 (0.00341) | 0.0132** (0.00590) | 0.0138** (0.00517) | −0.00295 (0.00434) | 0.00620 (0.00909) | 0.00906 (0.0106) | −0.00527 (0.00438) | −0.00663 (0.0146) | −0.00687 (0.0137) |
| Medicaid payment rate | 0.000439 (0.00341) | 0.00321 (0.00418) | 0.00837* (0.00475) | 0.000494 (0.00187) | −0.00263 (0.00360) | −0.00276 (0.00326) | −0.00291* (0.00167) | −0.00527 (0.00354) | −0.00427 (0.00335) | −0.00322 (0.00348) | −0.00182 (0.00478) | −0.00134 (0.00437) |
| Case-mix reimbursement | −0.00553 (0.01000) | −0.0224 (0.0197) | −0.0328 (0.0280) | 0.00518 (0.00882) | 0.0153 (0.0146) | 0.0151 (0.0128) | 0.0265 (0.0159) | 0.0680** (0.0309) | 0.0698** (0.0285) | 0.00924 (0.0148) | 0.0170 (0.0220) | 0.0169 (0.0212) |
| AR(1) coefficient | 0.48 | 0.2 | 0.21 | −0.08 | ||||||||
| No. of obs. | 42,259 | 288 | 288 | 50,996 | 288 | 288 | 51,763 | 288 | 288 | 48,352 | 288 | 288 |
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. Share of Medicaid patients on the horizontal axes is a standardized measure of the number of Medicaid patients divided by the total number of beds in each nursing home. Standard errors clustered by state. Medicaid repayment rate is in $10 increments.
*, **, and ***
indicate significance at the 10%, 5%, and 1 % level, respectively.