# Assume that a nursing home has two categories of payers.Medicaid pays \$60 per day, and private-pay patients pay the established per diem.

Assume that a nursing home has two categories of payers.Medicaid pays \$60 per day, and private-pay patients pay the established per diem..

#### Assume that a nursing home has two categories of payers.Medicaid pays \$60 per day, and private-pay patients pay the established per diem.

Assume that a nursing home has two categories of payers

Assume that a nursing home has two categories of payers. Medicaid pays \$60 per day, and private-pay patients pay the established per diem. However, approximately 10 percent of private-pay charges are not collected. Variable costs are \$45 per day, and fixed costs are expected to be \$1 million. Expected volume is 50,000 patient days.

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?

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Assume that a nursing home has two categories of payers.Medicaid pays \$60 per day, and private-pay patients pay the established per diem.