Strategy, structure and performance in nursing facilities

Abstract

This study tests the contingency theory proposition that a nursing facility's strategy moderated by its management structure improves performance. Strategy is modeled in terms of degree of innovation; while structure is modeled as organic versus mechanistic. Payor mix, measured as the proportion of Medicaid residents, is used as an indicator of financial performance. Facilities in eight states comprise the sample (N = 308). The data are analyzed via hierarchical moderated regression analysis. The primary finding is that facilities that are both innovative and have an organic structure are more likely to have a lower proportion of Medicaid residents, an indicator of stronger financial performance.

Citation

Davis, J.A., Brannon, D., Zinn, J. and Mor, V. (2001), "Strategy, structure and performance in nursing facilities", Advances in Health Care Management (Advances in Health Care Management, Vol. 2), Emerald Group Publishing Limited, Leeds, pp. 291-313. https://doi.org/10.1016/S1474-8231(01)02031-6