Rohit Pradhan PhD , Akbar Ghiasi PhD , Robert Weech-Maldonado PhD
{"title":"The Impact of Nursing Staff Wages on Nursing Home Quality: An Instrumental Variable Approach","authors":"Rohit Pradhan PhD , Akbar Ghiasi PhD , Robert Weech-Maldonado PhD","doi":"10.1016/j.jamda.2025.105705","DOIUrl":null,"url":null,"abstract":"<div><h3>Objective</h3><div>Nursing staff are central to ensuing high-quality care in nursing homes (NHs), yet their wages often lag behind those in other health care settings. This study aimed to examine whether higher wages for nursing staff—registered nurses (RNs), licensed practical nurses (LPNs), and certified nursing assistants (CNAs)—were associated with better NH quality.</div></div><div><h3>Design</h3><div>This was an observational study using panel data from 2020 to 2022.</div></div><div><h3>Setting and Participants</h3><div>The study included all Centers for Medicare and Medicaid Services–certified US NHs. The analytic data file comprised 37,577 facilities.</div></div><div><h3>Methods</h3><div>This study used multiple secondary datasets, including the Payroll-Based Journal, Medicare Cost Reports, Care Compare: Five-Star Quality Rating System (Five-Star QRS), and LTCFocus.org. The primary outcome was NH quality, operationalized through the quality domain of the Five-Star QRS. The primary independent variables were the facility-level average hourly wages for RNs, LPNs, and CNAs, adjusted for inflation. To address potential endogeneity, average nursing staff wages at the county level, excluding the index facility, were used as an instrument for wages.</div></div><div><h3>Results</h3><div>A 1-dollar increase in wages for RNs, LPNs, and CNAs was associated with 12% (95% CI, 1.07–1.17), 10% (95% CI, 1.05–1.15), and 8% (95% CI, 1.07–1.45) higher odds, respectively, of obtaining a higher star rating (<em>P</em> < .001). Marginal effects analysis showed that a 1-dollar increase in wages was associated with a 2.4%, 2.0%, and 1.8% higher likelihood of achieving a 5-star rating for RNs, LPNs, and CNAs, respectively.</div></div><div><h3>Conclusions and Implications</h3><div>Higher nursing staff wages were associated with increased odds of achieving a higher quality rating. NHs need to offer competitive wages as part of broader efforts to improve quality. Targeted reimbursement strategies may be necessary to support wage increases, especially for facilities serving a high proportion of vulnerable residents.</div></div>","PeriodicalId":17180,"journal":{"name":"Journal of the American Medical Directors Association","volume":"26 8","pages":"Article 105705"},"PeriodicalIF":4.2000,"publicationDate":"2025-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of the American Medical Directors Association","FirstCategoryId":"3","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1525861025002221","RegionNum":2,"RegionCategory":"医学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"GERIATRICS & GERONTOLOGY","Score":null,"Total":0}
引用次数: 0
Abstract
Objective
Nursing staff are central to ensuing high-quality care in nursing homes (NHs), yet their wages often lag behind those in other health care settings. This study aimed to examine whether higher wages for nursing staff—registered nurses (RNs), licensed practical nurses (LPNs), and certified nursing assistants (CNAs)—were associated with better NH quality.
Design
This was an observational study using panel data from 2020 to 2022.
Setting and Participants
The study included all Centers for Medicare and Medicaid Services–certified US NHs. The analytic data file comprised 37,577 facilities.
Methods
This study used multiple secondary datasets, including the Payroll-Based Journal, Medicare Cost Reports, Care Compare: Five-Star Quality Rating System (Five-Star QRS), and LTCFocus.org. The primary outcome was NH quality, operationalized through the quality domain of the Five-Star QRS. The primary independent variables were the facility-level average hourly wages for RNs, LPNs, and CNAs, adjusted for inflation. To address potential endogeneity, average nursing staff wages at the county level, excluding the index facility, were used as an instrument for wages.
Results
A 1-dollar increase in wages for RNs, LPNs, and CNAs was associated with 12% (95% CI, 1.07–1.17), 10% (95% CI, 1.05–1.15), and 8% (95% CI, 1.07–1.45) higher odds, respectively, of obtaining a higher star rating (P < .001). Marginal effects analysis showed that a 1-dollar increase in wages was associated with a 2.4%, 2.0%, and 1.8% higher likelihood of achieving a 5-star rating for RNs, LPNs, and CNAs, respectively.
Conclusions and Implications
Higher nursing staff wages were associated with increased odds of achieving a higher quality rating. NHs need to offer competitive wages as part of broader efforts to improve quality. Targeted reimbursement strategies may be necessary to support wage increases, especially for facilities serving a high proportion of vulnerable residents.
期刊介绍:
JAMDA, the official journal of AMDA - The Society for Post-Acute and Long-Term Care Medicine, is a leading peer-reviewed publication that offers practical information and research geared towards healthcare professionals in the post-acute and long-term care fields. It is also a valuable resource for policy-makers, organizational leaders, educators, and advocates.
The journal provides essential information for various healthcare professionals such as medical directors, attending physicians, nurses, consultant pharmacists, geriatric psychiatrists, nurse practitioners, physician assistants, physical and occupational therapists, social workers, and others involved in providing, overseeing, and promoting quality