title: Organizational efficiency and quality in Texas nursing facilities.
abstract: Profit-seeking nursing facilities have been found to be overwhelmingly more cost efficient than nonprofit facilities. However, the question remains as to whether these organizational-efficiency differences are the result of operating structural differences (i.e., agency relationship costs) or differences in the quality of care rendered. Using traditional cost- and profit-function regression analyses which include a new index measure for quality, we conclude that quality influences costs and profits marginally, efficiency differences reflect agency costs and differences in organizational goals, and the belief that increases in quality require increases in cost does not hold when facility capacity is significantly underutilized.
authors.affiliation: Department of Maritime Administration, Texas A&M University at Galveston, Galveston, TX 77552, USA. knoxj@tamug.tamu.edu
authors.forename: Kris Joseph
authors.initials: KJ
authors.lastname: Knox
authors.forename: Eric C
authors.initials: EC
authors.lastname: Blankmeyer
authors.forename: J R
authors.initials: JR
authors.lastname: Stutzman
mesh_terms: D003258:Consumer Behavior; D017598:Efficiency, Organizational / Q000191:economics*; D006269:Health Facilities, Proprietary / Q000191:economics / Q000458:organization & administration; D008330:Management Audit; D018803:Models, Economic; D009939:Organizations, Nonprofit / Q000191:economics / Q000458:organization & administration; D011787:Quality of Health Care / Q000191:economics / Q000458:organization & administration*; D011788:Quality of Life; D012044:Regression Analysis; D012866:Skilled Nursing Facilities / Q000191:economics / Q000458:organization & administration*; D013781:Texas