Nursing facilities and managed care

Marylou Guihan*, Jeffery M. Erdman, Donna J. Munroe, Susan L. Hughes

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


Objective: To examine the extent to which Illinois nursing facilities have developed relationships with other healthcare providers, particularly managed care organizations (MCOs). Study Design: 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. Study Population: The sample included 523 Illinois nursing facilities. A total response rate of 60% was achieved (523/867). Results: 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. Conclusions: 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 l hose in urban areas, are increasingly controlled by MCOs.

Original languageEnglish (US)
Pages (from-to)737-746
Number of pages10
JournalAmerican Journal of Managed Care
Issue number6
StatePublished - Jun 1 1999

ASJC Scopus subject areas

  • Health Policy

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