Merry Meadows provides non-acute inpatient care. They have 2 departments: Short term care for patients transitioning from
Question:
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 |
What was the 2021 Cost Variance?
Cambridge International AS & A Level Further Mathematics Coursebook
ISBN: 9781108403375
1st Edition
Authors: Lee Mckelvey, Martin Crozier