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Publisher: Wiley-Blackwell
Languages: English
Types: Article
Subjects:

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mesheuropmc: health care economics and organizations, health care facilities, manpower, and services
While the influence of government regulation on organizations is undeniable, empirical research in this field is scarce. This study investigates how the understanding of and attitudes towards government regulation among public, nonprofit, and for-profit managers affect organizational performance, using U.S. nursing homes as the empirical setting. Our findings suggest that managers’ perceptions of regulation legitimacy – views of regulation fairness, inspectors’ effectiveness, and internal utility of the mandates – positively affect service quality. Sub-group analysis suggests that the managers’ views of regulation matter in nonprofit and for-profit, but not public organizations. In nonprofit homes, performance declines when managers report higher regulatory expertise – better knowledge of the regulatory standards. In for-profit facilities, frequent communication with regulators lowers quality. These findings suggest that the regulated entities’ views of government regulation are central to their success, which necessitates improvements in the regulatory process.
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