Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

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 sent to generate $150,000 in profit? Variable costs are $45. 00 per day and fixed costs are expected to be $ 1000,000. Expected income is 50,000 patient days. Using the data of problem 6 and assuming that the nursing home charges $100 per day, what would be the nursing homes required volume (in patient days) in order to make $150,000 profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Financial Management

Authors: William R. Lasher

6th Edition

1439080496, 978-1439080498

More Books

Students also viewed these Finance questions

Question

What does this look like?

Answered: 1 week ago