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Why nonprofit nursing homes pay higher nurses' salaries
Author(s) -
Holtmann Alphonse,
Idson Todd
Publication year - 1991
Publication title -
nonprofit management and leadership
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.844
H-Index - 54
eISSN - 1542-7854
pISSN - 1048-6682
DOI - 10.1002/nml.4130020104
Subject(s) - nursing homes , nursing , business , quality (philosophy) , for profit , demographic economics , psychology , medicine , economics , finance , philosophy , epistemology
It is generally agreed that nonprofit nursing homes pay higher wages to their employees, hire more staff per patient, and are thus more costly than for‐profit nursing homes. We attempt to show that higher costs in nonprofit nursing homes are related to higher quality of care in these homes. Using the 1985 National Nursing Home Survey, we show that nurses in nonprofit nursing homes have different characteristics than nurses in for‐profit homes and that these differences in characteristics account for the differences in wages, a finding consistent with our hypothesis concerning quality differences between types of homes.