Assume that a certain nursing home has two categories of payers. Medicaid pays $60.00 per day and private pay patients pay the established per diem, but approximately 10 percent of private pay charges are not collected. If 50 percent of the patients are Medicaid and 50 percent are private pay, what rate must be set to generate $150,000 in profit? Variable costs are $45.00 per day and fixed costs are expected to be $1,000,000. Expected volume is 50,000 patient days.
Assume that a certain nursing home has two categories of payers. Medicaid pays $60.00 per day and private pay patients pay the established per diem, but approximately 10 percent of private pay charges are not collected. If 50 percent of the patients are Medicaid and 50 percent are private pay, what rate must be set to generate $150,000 in profit? Variable costs are $45.00 per day and fixed costs are expected to be $1,000,000. Expected volume is 50,000 patient days.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 39P
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Transcribed Image Text:Assume that a certain nursing home has two categories of payers.
Medicaid pays $60.00 per day and private pay patients pay the
established per diem, but approximately 10 percent of private pay
charges are not collected.
If 50 percent of the patients are Medicaid and 50 percent are private
pay, what rate must be set to generate $150,000 in profit? Variable
costs are $45.00 per day and fixed costs are expected to be
$1,000,000. Expected volume is 50,000 patient days.
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