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Your nursing home defines output as a patient day. The present volume is 18,000 patient days. The average cost per day is $95.00. Present revenues and costs are presented below.

	Patient-Days	Amount
Revenues:
Charge Patients	6,000	$ 750,000
Fixed Price Patients	20,000	$ 1,800,000
Total Revenues	26,000	$ 2,550,000	$ 98.08
Costs:
Fixed Costs	$ 1,170,000
Variable Costs	$ 45.00	$ 1,170,000
Total Costs		$ 2,340,000
Profit or Net Income		$ 210,000

Discussion Prompt:

What is the breakeven inpatient days for this nursing home, assuming no profit is required? If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be? Respond to the following questions:

1. Calculate the results.

   Your nursing home defines output as a patient day. The present volume is 18,000 patient days. The average cost per day is $95.00. Present revenues and costs are presented below.

   	Patient-Days	Amount
   Revenues:
   Charge Patients	6,000	$ 750,000
   Fixed Price Patients	20,000	$ 1,800,000
   Total Revenues	26,000	$ 2,550,000	$ 98.08
   Costs:
   Fixed Costs	$ 1,170,000
   Variable Costs	$ 45.00	$ 1,170,000
   Total Costs		$ 2,340,000
   Profit or Net Income		$ 210,000

   Discussion Prompt:

   What is the breakeven inpatient days for this nursing home, assuming no profit is required? If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be? Respond to the following questions:

2. Calculate the results.

   Your nursing home defines output as a patient day. The present volume is 18,000 patient days. The average cost per day is $95.00. Present revenues and costs are presented below.

   	Patient-Days	Amount
   Revenues:
   Charge Patients	6,000	$ 750,000
   Fixed Price Patients	20,000	$ 1,800,000
   Total Revenues	26,000	$ 2,550,000	$ 98.08
   Costs:
   Fixed Costs	$ 1,170,000
   Variable Costs	$ 45.00	$ 1,170,000
   Total Costs		$ 2,340,000
   Profit or Net Income		$ 210,000

   Discussion Prompt:

   What is the breakeven inpatient days for this nursing home, assuming no profit is required? If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be? Respond to the following questions:

3. Calculate the results.

   Your nursing home defines output as a patient day. The present volume is 18,000 patient days. The average cost per day is $95.00. Present revenues and costs are presented below.

   	Patient-Days	Amount
   Revenues:
   Charge Patients	6,000	$ 750,000
   Fixed Price Patients	20,000	$ 1,800,000
   Total Revenues	26,000	$ 2,550,000	$ 98.08
   Costs:
   Fixed Costs	$ 1,170,000
   Variable Costs	$ 45.00	$ 1,170,000
   Total Costs		$ 2,340,000
   Profit or Net Income		$ 210,000

   Discussion Prompt:

   What is the breakeven inpatient days for this nursing home, assuming no profit is required? If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be? Respond to the following questions:

4. Calculate the results.

   Your nursing home defines output as a patient day. The present volume is 18,000 patient days. The average cost per day is $95.00. Present revenues and costs are presented below.

   	Patient-Days	Amount
   Revenues:
   Charge Patients	6,000	$ 750,000
   Fixed Price Patients	20,000	$ 1,800,000
   Total Revenues	26,000	$ 2,550,000	$ 98.08
   Costs:
   Fixed Costs	$ 1,170,000
   Variable Costs	$ 45.00	$ 1,170,000
   Total Costs		$ 2,340,000
   Profit or Net Income		$ 210,000

   Discussion Prompt:

   What is the breakeven inpatient days for this nursing home, assuming no profit is required? If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be? Respond to the following questions:

5. Calculate the results.

   Your nursing home defines output as a patient day. The present volume is 18,000 patient days. The average cost per day is $95.00. Present revenues and costs are presented below.

   	Patient-Days	Amount
   Revenues:
   Charge Patients	6,000	$ 750,000
   Fixed Price Patients	20,000	$ 1,800,000
   Total Revenues	26,000	$ 2,550,000	$ 98.08
   Costs:
   Fixed Costs	$ 1,170,000
   Variable Costs	$ 45.00	$ 1,170,000
   Total Costs		$ 2,340,000
   Profit or Net Income		$ 210,000

   Discussion Prompt:

   What is the breakeven inpatient days for this nursing home, assuming no profit is required? If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be? Respond to the following questions:

6. Calculate the results.

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