City Home Care (CHC) hires a furnished office at $4000 per month, telephones at $400 a month, and a secretary at $4000 per month. These resources do not change, no matter how many clients are visited. Currently, CHC sees 900 patients a month, each three times (2700 visits in total). CHC uses 30 full-time nurses with their own cars, and they are paid $8000 per month each. There is a plentiful supply of additional nurses in town. These nurses can be hired almost on notice. Supplies are $40 per patient per month. What are the monthly money costs of operating CHC at its current level? Approximately how much would it cost to operate CHC at a level of 3150 visits per month assuming patients continued to be seen three times each month, and nurses were working at full capacity at the original level of patient visits?

Answered: City Home Care (CHC) hires a furnished…

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter8: Managed Care

Section: Chapter Questions

Problem 2QAP

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City Home Care (CHC) hires a furnished office at $4000 per month, telephones at $400 a month, and a secretary at $4000 per month. These resources do not change, no matter how many clients are visited. Currently, CHC sees 900 patients a month, each three times (2700 visits in total). CHC uses 30 full-time nurses with their own cars, and they are paid $8000 per month each. There is a plentiful supply of additional nurses in town. These nurses can be hired almost on notice. Supplies are $40 per patient per month. What are the monthly money costs of operating CHC at its current level? Approximately how much would it cost to operate CHC at a level of 3150 visits per month assuming patients continued to be seen three times each month, and nurses were working at full capacity at the original level of patient visits?

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Step 1

Given that,

City Home Care (CHC) hires an office at $4000 per month

telephones at $400 a month and a secretary at $4000 per month

CHC sees 900 patients a month, every three times

Supplies are $40 per patient per month

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