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The relationship between costs and quality in nonprofit nursing homes

Di Giorgio, Laura ; Filippini, Massimo ; Masiero, Giuliano

We investigate the relationship between costs and quality in nonprofit nursing homes, a key issue in the present context of cost containment measures. In accordance with the economic theory of production, we estimate a three-inputs total cost function for nursing home services using data from 45 nursing homes in Switzerland between 2006 and 2010. Quality is measured by means of clinical...