Assume that Brightview Senior Care has two categories of payers. Medicare pays $75.00 per day, and private pay patients pay the established per diem rate, but approximately 8% of private pay charges are collected. If 40% of the patients are Medicare and 60% are private pay, what rate must be set to generate $200,000 in profit? Variable costs are $50.00 per day, and fixed costs are expected to be $1,200,000. Expected volume is 60,000 patient days.
Assume that Brightview Senior Care has two categories of payers. Medicare pays $75.00 per day, and private pay patients pay the established per diem rate, but approximately 8% of private pay charges are collected. If 40% of the patients are Medicare and 60% are private pay, what rate must be set to generate $200,000 in profit? Variable costs are $50.00 per day, and fixed costs are expected to be $1,200,000. Expected volume is 60,000 patient days.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 39P
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Assume that Brightview Senior Care has two categories of payers.
Transcribed Image Text:Assume that Brightview Senior Care has two categories
of payers. Medicare pays $75.00 per day, and private pay
patients pay the established per diem rate, but
approximately 8% of private pay charges are
collected.
If
40% of the patients are Medicare and 60% are private
pay, what rate must be set to generate $200,000 in profit?
Variable costs are $50.00 per day, and fixed costs are
expected to be $1,200,000. Expected volume is 60,000
patient days.
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