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Applied Economics Volume 25, 1993 - Issue 1
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Original Articles

The efficiency of nursing home chains

John L. Fizel School of Business, Penn State-Erie, Station Road, Erie, PA, 16563–1400, USA
&
Thomas S. Nunnikhoven School of Business, Penn State-Erie, Station Road, Erie, PA, 16563–1400, USA
Pages 49-55 | Published online: 24 May 2006
 
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Abstract

Data envelopment analysis is used to estimate technical efficiency in for-profit independent and for-profit chain nursing homes. The empirical findings suggestceteris paribus, that significant multiplant economies exist. Thus, the growth of chain ownership may offer promise for an industry hampered by repidly rising costs.

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