This report evaluates the types of data gathered about nursing homes during a survey process by the State of Illinois through its Inspection of Care Review and Quality Incentive Program (QUIP) assessments. The data are compared to other State systems/demonstrations in an effort to choose those indicators which best measure the quality of care in Illinois nursing homes. The report begins with a description of the Institute of Medicine's report on improving nursing home quality of care. Descriptions of the survey process for the State of Illinois, the Wisconsin Quality Assurance Project and New York's Sentinel Health Events follow. The report notes that the Wisconsin and New York projects operated under waivers of some nursing home regulations granted by the Health Care Financing Administration. A comparison of the quality indicators used by each of the three State systems/demonstrations is provided. Conclusions and recommendations regarding the measurement of quality in Illinois nursing homes is included. The appendix lists quality indicators used in the three systems in these categories: physical plant; quality of life; indirect patient care; custodial services; skilled nursing care; therapies; social services/activities; and staff/management. (ABL)