Strategic groups and performance in the nursing home industry: A reexamination

This study further examines the relationship between strategic group member ship and performance in the nursing home industry. The results indicate sev en strategic groups in the industry with significant between-group differen ces in operating margin, average profit per patient day, catheterization ra te, health deficiencies, life and safety deficiencies, and efficiency in th e provision of services. The authors did not, however,find significant betw een-group differences in pressure sore rate, the use of restraints, or in t he percentage of patients with significant unplanned weight changes. The gr oup with the highest private-pay utilization combined with high Medicare ut ilization generally performed the best along all indicators. Results also s uggest that strategic group membership and rural/urban location have a grea ter impact on performance than do ownership, chain membership, or possessio n of a dedicated specialty care unit.