Table 2.
Effect of Litigation or Malpractice Environment on Exit Average Marginal Effects From Probit Models.
| All nursing homes |
Nursing homes with no litigation during the study period |
|||||
|---|---|---|---|---|---|---|
| Without malpractice environment |
With malpractice environment |
Only malpractice environment |
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| Change of ownershipa | Closurea | Change of ownershipa | Closurea | Change of ownershipa | Closurea | |
| Dependent variable (mean) | 0.0663 | 0.0178 | 0.0663 | 0.0178 | 0.0520 | 0.0183 |
| Independent variables | ||||||
| Litigation | 0.0065 (0.0064) | −0.0027 (0.0033) | 0.0037 (0.0064) | −0.0034 (0.0033) | — | — |
| Malpractice environment | — | — | 0.0032** (0.0014) | 0.0008 (0.0008) | 0.0038* (0.0019) | 0.0001 (0.0014) |
| Less competitive market (HHI>0.15) | 0.0163** (0.0077) | −0.0071* (0.0037) | 0.0160** (0.0077) | −0.0071* (0.0036) | 0.0245*** (0.0080) | −0.0106** (0.0044) |
| Average damage amount | 0.0002 (0.0003) | 0.0000 (0.0001) | 0.0002 (0.0003) | −0.0000 (0.0001) | 0.0007 (0.0006) | 0.0003 (0.0003) |
| ADL index | 0.0065*** (0.0022) | −0.0012 (0.0012) | 0.0065*** (0.0022) | −0.0012 (0.0012) | 0.0072*** (0.0025) | 0.0015 (0.0016) |
| Special care index | −0.0176 (0.0168) | 0.0033 (0.0053) | −0.0173 (0.0167) | 0.0035 (0.0053) | −0.0238 (0.0196) | 0.0004 (0.0057) |
| Total RN hours per resident-day | −0.0004 (0.0072) | 0.0030 (0.0034) | −0.0008 (0.0072) | 0.0029 (0.0034) | −0.0125 (0.0105) | −0.0074 (0.0063) |
| Total LPN hours per resident-day | −0.0047 (0.0066) | 0.0093*** (0.0023) | −0.0046 (0.0065) | 0.0093*** (0.0023) | −0.0155* (0.0094) | 0.0154*** (0.0037) |
| Total nurse aides hours per resident-day | −0.0069* (0.0041) | −0.0011 (0.0017) | −0.0060 (0.0041) | −0.0009 (0.0017) | 0.0004 (0.0050) | −0.0004 (0.0020) |
| % Medicaid | 0.0004*** (0.0002) | 0.0005*** (0.0001) | 0.0004*** (0.0002) | 0.0005*** (0.0001) | 0.0006*** (0.0002) | 0.0005*** (0.0001) |
| % Medicare | 0.0001 (0.0003) | 0.0001 (0.0002) | 0.0002 (0.0003) | 0.0001 (0.0002) | 0.0003 (0.0003) | −0.0003 (0.0003) |
| Facility total beds (in 100s) | −0.0018 (0.0048) | −0.0083** (0.0033) | −0.0017 (0.0048) | −0.0082** (0.0033) | 0.0085 (0.0058) | −0.0152*** (0.0054) |
| NH beds in county (in 1000s) | −0.0006 (0.0004) | −0.0001 (0.0002) | −0.0006 (0.0004) | −0.0001 (0.0002) | 0.0003 (0.0006) | 0.0002 (0.0003) |
| Not-for-profit | −0.0385*** (0.0084) | 0.0063* (0.0035) | −0.0387*** (0.0084) | 0.0062* (0.0035) | −0.0235** (0.0092) | 0.0058 (0.0045) |
| Government-owned | −0.1004*** (0.0322) | −0.0025 (0.0087) | −0.1005*** (0.0324) | −0.0026 (0.0087) | −0.0776*** (0.0288) | −0.0011 (0.0100) |
| Multifacility organization | 0.0379*** (0.0060) | 0.0026 (0.0029) | 0.0381*** (0.0060) | 0.0026 (0.0029) | 0.0380*** (0.0073) | 0.0039 (0.0038) |
| Urban | 0.0203* (0.0110) | −0.0058 (0.0043) | 0.0201* (0.0109) | −0.0058 (0.0043) | 0.0188* (0.0101) | −0.0056 (0.0049) |
Note. Malpractice environment is defined as the number of litigation claims in state minus facility per 1000 beds. Average damage amount is defined per claim in the county (in $10 000). HHI = Herfindahl-Hirschman Index; ADL = activities of daily living; RN = registered nurse; LPN = licensed practical nurse.
a
Average marginal effects from probit models controlling for “Medicare bite” variables along with state and year fixed effects are provided. Standard errors provided in parentheses are clustered at the facility level.
*
P < .10. **P < .05. ***P < .01.