DO FOR-PROFIT AND NOT-FOR-PROFIT NURSING-HOMES BEHAVE DIFFERENTLY

The purpose of this study was to examine behavioral differences betwee n for-profit (FP) and not-for-profit (NFP) nursing homes. Previous stu dies have failed to establish consistent behavioral differences. This study uses a simultaneous equation model to control for potential endo geneity among system variables, with model parameters estimated using 3SLS. the study provides evidence that NFPs provide significantly high er quality of care to Medicaid beneficiaries and to self-pay residents than do FPs, as evidenced by better staffing and better outcomes amon g nursing homes with residents at higher risk for adverse outcomes.