Reference no: EM132502400

Using the below information, answer the following questions:

Current census (number of residents) - 60

Empty beds - 40

Building rent - 30,000 month

Food - $12 per resident per day

Staffing - $75 per resident per day (this can be adjusted up and down with the SNF's census)

Price paid b a commercially insured or private pay resident - $012 per day

Medicaid rate for a day of patient care - $95

Question 1: What is the average cost of caring for one patient for one day given the current census of 60 residents? (Hint: you'll need to divide building rent by the number of days in a month...assume 30... and the number of residents cared for each day. The food and staffing cost are already provided as per patient day amounts).

Question 2: Is the accountant correct that Medicaid doesn't pay enough to cover your cost?

Question 3: What would happen to your per-patient-day cost for rent if you had more residents?

Question 4: What is the contribution margin for a commercially insured/self-pay resident?

Question 5: What is the contribution margin for a medicaid patient?

Question 6: How much are you currently losing each month at your current census level (60 private pay patients)?

Question 7: How much would your total profit (or loss) be each month if you added a total of 10 Medicaid residents in addition to 60 private pay residents?.

Question 8: How much would your profit (or loss) be each month if you added a total of 20 Medicaid residents in addition to 60 private pay residents?