Nursing facilities and managed care

• Published in: The American journal of managed care Vol. 5; no. 6; pp. 737 - 746
• Main Authors: Guihan, M, Erdman, J M, Munroe, D J, Hughes, S L
• Format: Journal Article
• Language: English
• Published: United States 01.06.1999
• Subjects: Aged; Cooperative Behavior; Cross-Sectional Studies; Data Collection; Efficiency, Organizational - statistics & numerical data; Health administration; Health Services Research; Humans; Illinois; Managed Care Programs - organization & administration; Nursing Homes - economics; Nursing Homes - organization & administration; Nursing Homes - statistics & numerical data; Organizational Affiliation - economics; Organizational Affiliation - statistics & numerical data; Organizational Objectives; Ownership; Regression Analysis; Risk Sharing, Financial; Illinois
• ISSN: 1088-0224

To examine the extent to which Illinois nursing facilities have developed relationships with other healthcare providers, particularly managed care organizations (MCOs). A cross-sectional survey of nursing facilities designed to determine: 1) relationship objectives; 2) obstacles to developing relationships; 3) currently available services; 4) staffing for these services and; 5) nursing facility approaches to networking. The survey was sent to a census sample of 867 nursing facilities serving the elderly in Illinois. Descriptive and multivariate logistic regression analyses of relationships determined to be formal/risk-sharing were performed. The sample included 523 Illinois nursing facilities. A total response rate of 60% was achieved (523/867). Higher strategic goals, urban location, nonprofit ownership status, higher percentages of private pay and/or Medicare clients (vs Medicaid), and provision of home care and subacute services were all significant predictors of formal or risk-sharing relationships with MCOs. Facilities with more relationships and higher goals have more formal/risk-sharing relationships with MCOs. Facilities in urban areas have more relationships, likely due to the fact that rural facilities have fewer options and operate in different markets. In addition, nursing facilities rely on Medicare referrals from hospitals, and these Medicare patients, especially those in urban areas, are increasingly controlled by MCOs.