Table 1.
Summary Statistics for the Sample of Nursing Homes, 1997-2005.
| Mean (SD) | |
|---|---|
| Dependent variables | |
| Change of ownership in next 2 years | 0.07 (0.25) |
| Closure in next 2 years | 0.02 (0.13) |
| Independent variables | |
| Litigation | 0.13 (0.33) |
| Malpractice environmenta | 1.81 (2.07) |
| Control variables | |
| Less competitive market (HHI > 0.15) | 0.24 (0.43) |
| For-profit | 0.71 (0.46) |
| Not-for-profit | 0.25 (0.43) |
| Government-owned | 0.04 (0.20) |
| Multifacility organization | 0.51 (0.50) |
| Urban | 0.84 (0.37) |
| Average damage amounta | 1.12 (6.17) |
| ADL index | 9.80 (1.45) |
| Special care index | 0.17 (0.17) |
| % Medicaid | 60.99 (23.20) |
| % Medicare | 11.64 (13.05) |
| Facility total beds (in 100s) | 1.33 (0.69) |
| Total RN hours per resident-day | 0.41 (0.38) |
| Total LPN hours per resident-day | 0.64 (0.40) |
| Total nurse aides hours per resident-day | 2.05 (0.82) |
| Nursing home beds in county (in 1000s) | 6.11 (10.11) |
| Number of observations | 15 914 |
| Number of facilities | 2246 |
Note. HHI = Herfindahl-Hirschman Index; ADL = activities of daily living; RN = registered nurse; LPN = licensed practical nurse.
a
Malpractice environment is defined as the number of litigation claims in the state minus facility per 1000 beds. Average damage amount is defined per claim in the county (in $10 000).