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Does Quality of Care Lead to Better Financial Performance?: The Case of the Nursing Home Industry

Weech-Maldonado, Robert; Neff, Gerald; Mor, Vince

HCMR Award Winner

The study describes the relationship between quality of care and financial performance (operating profit margin) as it pertains to the nursing home industry. We found that nursing homes that produce better outcomes and process of care were able to achieve lower patient care costs and report better financial performance.

Robert Weech-Maldonado, M.B.A., Ph.D., is Assistant Professor, Department of Health Policy & Administration, Pennsylvania State University, University Park, Pennsylvania. E-mail:

Gerald Neff, M.S., is an Assistant Vice President, Kaufman, Hall, and Associates, Northfield, Illinois. E-mail:

Vince Mor, Ph.D., is Professor and Chair, Department of Community Health, Faculty Associate, Center for Gerontology & Health Care Research, Brown University, Providence, Rhode Island. E-mail:

The research on which this article is based was supported in part by NIA Grant #11624.

© 2003 Lippincott Williams & Wilkins, Inc.