This study examines the relationship between profits per patient day and four measures of the quality of patient care for a sample of proprietary nursing homes in California. Multiple regression results indicate a consistent negative relationship between profitability and patient care quality. Since the nursing home industry will continue to be dominated by proprietary institutions into the forseeable future, practitioners and policymakers will need to give more thought to the reconciliation of profits and quality.
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Fottler et al. (1981) studied this question.
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