Science
Health Care Finance Assignment

Question Description

Answer the two questions using Word or Excel and show all work.

1. 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.


2. Using this data and assuming that the nursing home charges $100 per day, what

would be the nursing home’s required volume (in patient days) in order to make

$150,000 profit?

Unformatted Attachment Preview

Health Care Finance Assignment: Answer the following questions in Word or Excel and show all work. 1. 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. 2. Using this data and assuming that the nursing home charges $100 per day, what would be the nursing home’s required volume (in patient days) in order to make $150,000 profit? ...
Purchase answer to see full attachment

Final Answer

Attached.

Question 1
Medicaid= medicaid pay per day × patient days.
(60 × 50,000) × 50%= 1,500,000
Total cost= variable cost + fixed cost
v...

DoctorDickens (8679)
Rice University

Anonymous
Top quality work from this tutor! I’ll be back!

Anonymous
Just what I needed… fantastic!

Anonymous
Use Studypool every time I am stuck with an assignment I need guidance.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors