This study aims to examine the extent to which certain organizational characteristics of a nursing home impact its decision to target the community‐based seniors' (CBS) market by offering nursing home services to non‐residents. The study aims to hypothesize that service provision would be greater in not‐for‐profit, innovative nursing homes, those with organizational slack, and those that are chain‐affiliated.
Data came from the 1999 National Nursing Home Survey. There are 1,075 nursing homes in the sample population. The data were analyzed using logistic regression.
The results show that for‐profit nursing homes were predisposed to offer these services. However, innovative nursing homes were less likely to offer these services. Finally, homes with slack in the form of physical therapists offered these services, but homes with nurse's aide slack were less likely to offer these services.
The findings support the theoretical propositions that CBS service provision is guided by both customer lifetime value principles and the tenets of relationship marketing. The purpose of establishing a long‐term relationship with a consumer is to achieve long‐term profits. Some nursing homes may be achieving this goal.
The health care system is steadily undergoing changing consumer behavior. Consumers will be more actively engaged in their own service delivery; therefore, providers will have to create innovative methods to meet consumer needs. The provision of services to non‐residents is an important and necessary response to market demands for services. The key for health care providers is to offer greater service diversity.
The paper provides evidence that for‐profit nursing home providers offer more services to non‐residents than not‐for‐profit providers.
