Table 2.

Mean Nursing Home Characteristics by Ultimate Ownership Category at Baseline (1998).

Facility Variables	Nursing Homes Bought by PI Firms a	All Other Nursing Homes b	Other For-Profit Nursing Homes c	Other For-Profit Chain Nursing Homes d
Total Beds	120.4	119.1	115.4***	112.84***
Occupancy	84.5%	82.8%***	81.8%***	80.9%***
Percent Medicaid	63.2%	64.7%**	67.8%***	68.1%***
Percent Medicare	13.0%	9.6%***	9.7%***	10.2%***
Registered Nurses (hours per resident day)	0.45	0.50	0.48	0.46
Licensed Practical Nurses (hours per resident day)	0.76	0.79	0.79	0.81
Nurse Aides (hours per resident day)	2.11	2.22**	2.13	2.09
Financial Variables
Total Operating Expenses e	126.15	125.75	123.26***	124.09**
Total Revenue e	164.24	144.26***	144.21***	145.60***
Current Ratio ≥ 2	16.5%	30.7%***	32.9%***	33.7%***
Current Ratio≥ 1 and <2	28.5%	34.8%***	33.7%***	30.5%
Current Ratio < 1	55.0%	34.5%***	33.4%***	35.8%***
Negative Operating Margin	25.8%	57.0%***	52.2%***	54.7%***
Operating Margin >0% and ≤5%	20.1%	23.1%**	24.4%***	22.9%**
Operating Margin > 5%	54.1%	19.9%***	23.4%***	22.4%***
Debt Servicing Cost = 0 f	65.8%	49.0%***	46.1%***	49.3%***
Debt Servicing Cost > 0 and <10	24.1%	29.8%***	31.8%***	34.0%***
Debt Servicing Cost ≥ 10	10.1%	21.3%***	22.1%***	16.7%***
N	1,382	10,415	7,469	4,964

^aIncludes all facilities subsequently bought by a private investment (PI) firm.

^bIncludes all facilities not bought by a PI firm.

^cIncludes all for-profit facilities not bought by a PI firm.

^dIncludes all for-profit, chain facilities not bought by a PI firm.

^eStandardized per bed-day and adjusted to 2013 dollars.

^fDebt servicing cost = 100 *(cash on hand/(debt interest + debt principal))

Significance denotes a statistically significant difference, using facilities purchased by a PI firm as the comparison group.

^*statistically significant at 5% level;

^**statistically significant at 1% level.