Authors: Kris J. Knox, Eric C. Blankmeyer, and J. R. Stutzman

Start Page: 177
End Page: 182
Volume: 7
Issue Number: 2
Year: 2001
Publication: Journal of Real Estate Portfolio Management

Abstract: Anderson, Lewis and Webb (1999) find that nursing facilities are relatively cost inefficient, profit-seeking homes are less inefficient than nonprofit facilities and chain facilities are more inefficient than independent firms. The purpose of this comment is to support and extend their findings. We also find that profit-seeking facilities are more efficient than nonprofit homes. However, chain facilities are significantly more efficient when both technical (cost) and allocative
(price) efficiency are considered. Hence, we are reluctant to accept their policy recommendation that mergers and subsidies to chain facilities be discouraged.