Table 3.

Relationship between Risk‐Adjusted Rehospitalization of the Chosen SNF and the Instrumental Variable (First Stage)

Variables	No Fixed Effects	With Zip Code Fixed Effects	With Zip Code Fixed Effects and Hospital Fixed Effects
Predicted risk‐adjusted rehospitalization rate based on distances and empty beds coefficients (IV)	0.961754*** [506.84]	0.6209179*** [165.74]	0.3206565*** [47.97]
Predicted risk‐adjusted rehospitalization rate based on risk‐adjusted rehospitalization rate and capacity coefficients (control variable)	0.0074368** [2.32]	0.1494898*** [23.82]	0.5055727*** [2.95]
Partial R‐squared	0.1883	0.0310
F‐statistics	2.6e+05	27,469.12	2,301.12

All regressions include patient's age, sex, race, dual eligibility, Deyo comorbidity index, hospital length of stay, distance of chosen SNF from hospital, and distance of chosen SNF from patient's residential neighborhood. t‐statistics are square brackets.

***p < .01.