Merry Meadows provides non-acute inpatient care. They have 2 departments: Short term care for patients transitioning from an inpatient hospital stay and long-term skilled nursing for patients who need full time help with activities in daily living and managing their health needs.

Fixed costs for Merry Meadows include $10,000 per month Mortgage payment. There is an administrator, who earns $75,000 per year. Short term care has 3 nurses who earn $60,000 per year each and 6 nursing aides who earn $40,000 per year each. Long term care has 2 nurses who earn $60,000 per year each and 10 nursing aides who earn $40,000 per year each.

Merry Meadows contracts for maintenance @ $3000 per month for the entire facility. Utilities are $1000 per month.

Variable costs include food/dietary services.

	Short term care	Long term care
Estimated patient days for 2021	5500 patient days	9125
Reimbursement	$350 per patient day	$300 per patient day
Food/Dietary	$25 per patient day	$25 per patient day

On January 1, 2022, Merry Meadows administrator reviewed their actual results for 202 They had 5000 short term patient days and 9500 long term care days. Actual reimbursement for short term care was $325 and $295 per patient day for Long term care. Due to a rise in wages, dietary costs were $30per patient day. All other costs and assumptions were as anticipated.

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