The increase in the number of chain-affiliated facilities is causing major structural
change in the long-term health care industry. In order to assess the impact of chain
ownership on performance, a sample of 265 skilled nursing facilities is analyzed
using data from the 1977 National Nursing Home Survey. Descriptive analysis
indicates differences in facihty costs and characteristics related to chain ownership.
Multiple regression analysis indicates that once facility characteristics are controlled for, no further significant cost differences attributable to chain affiliation
are found. Implications of the empirical results are discussed.
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