Table 3.
Effect of Litigation or Malpractice Environment on Change of Ownership—Subgroup Analyses.
| Subgroups | Change in ownership (mean) | Average marginal effecta |
|---|---|---|
| Profit status | ||
| For-profit | 0.0829 | |
| Litigation | 0.0022 (0.0083) | |
| Malpractice Environment | 0.0035* (0.0018) | |
| Not-for-profit | 0.0294 | |
| Litigation | 0.0004 (0.0109) | |
| Malpractice Environment | 0.0012 (0.0022) | |
| Chain membership | ||
| Multifacility organization | 0.0961 | |
| Litigation | 0.0050 (0.0102) | |
| Malpractice environment | 0.0046** (0.0023) | |
| Independent ownership | 0.03439 | |
| Litigation | −0.0006 (0.0077) | |
| Malpractice environment | 0.0007 (0.0016) | |
| Market competition | ||
| Competitive market (HHI ≤ 0.15) | 0.0687 | |
| Litigation | 0.0032 (0.0069) | |
| Malpractice environment | 0.0032** (0.0016) | |
| Less competitive market (HHI > 0.15) | 0.0590 | |
| Litigation | 0.0016 (0.0197) | |
| Malpractice environment | 0.0051 (0.0036) | |
Note. Malpractice environment is defined as the number of litigation claims in state minus facility per 1000 beds. An insufficient number of government-owned facilities precludes stratification for this group. HHI = Herfindahl-Hirschman Index.
a
Average marginal effects from probit models are provided after adjusting for facility case-mix and state and year fixed effects. Standard errors provided in parentheses are clustered at the facility level.
*
P < .10. **P < .05. ***P < .01.