Technical efficiency of for‐profit and non‐profit nursing homes
Managerial and Decision EconomicsPublished 1 September 1992
John L. Fizel, Thomas S. Nunnikhoven
Citations82
SJR quartileQ2
SJR score0.62
SNIP0.80
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TL;DR
The resulting efficiency indices demonstrate that for-profit homes have higher mean levels of efficiency and a more efficient production frontier than non-profits and support the property rights hypothesis that forprofit homes are inherently more efficient thannon-profit ones.
Abstract
Abstract This paper employs data envelopment analysis to generate efficiency indices for individual nursing homes relative to a best‐practice frontier. Further analysis then shows that these ‘unadjusted’ indices represent factors other than efficiency. Regression analysis purges the indices of these confounding influences. The resulting ‘adjusted’ efficiency indices demonstrate that for‐profit homes have higher mean levels of efficiency and a more efficient production frontier than non‐profit homes. These results support the property rights hypothesis that forprofit homes are inherently more efficient than non‐profit ones.
Keywords
Decision SciencesHealth ProfessionsEconomics, Econometrics and Finance
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