Economic Feasibility Of Adding A Nursing Home As A Healthcare Profitable

Determining the economic feasibility of adding a nursing home as a healthcare profitable operation is complicated and difficult. In analyzing the need, the company must determine if there is sufficient need for nursing home slots in the region to fill the beds and if there is a continuing need. Then, the administrator must determine what the ratio of private pay or insurance pay patients to Medicare and Medicaid patients will be and if the population numbers will support this ratio. Finally, the administrator must determine basic operating costs for the market, including costs of true health professionals and sub-professionals and their availability.
The first factor in determining whether to build a nursing home should be an evaluation of the aged population in the region. This should be both an immediate analysis and a long-term analysis to determine if there is currently a need and if that need is short term or if there will be a continuing need. To make this determination, the administrator will have to look at population trends and census data and predict the relative need for nursing home care. The administrator should also take into account changing health care trends including the tendency toward longer life expectancies and later need for nursing home care.
The second issue that needs to be considered is the ratio of private pay patients to patients receiving Medicare benefits or public assistance. If the majority of patients are going to be government funded, then the administrator needs to take into account the delay that often accompanies government payment for medical services. The company must be able to operate without payments from Medicare or Medicaid for months without jeopardizing its ability to pay bills. The plan must also account for situations when the private pay to public pay ratio slips toward more public pay patients and how to effectively manage the budget when this occurs.

Finally, administrators considering construction of a nursing home facility should research the local job market and determine if there are sufficient local professionals to staff the facility without having to resort to staffing agencies or outrageous bonuses to attract staff. With a national nursing shortage, it is possible that the cost of acquiring appropriate medical staff could make the cost of the project prohibitive.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

At Solution Essays, we are determined to deliver high-quality papers to our clients at a fair price. To ensure this happens effectively, we have developed 5 beneficial guarantees. This guarantees will ensure you enjoy using our website which is secure and easy to use.

Money-back guarantee

Most companies do not offer a money-back guarantee but with Solution Essays, it’s either a quality paper or your money back. Our customers are assured of high-quality papers and thus there are very rare cases of refund requests due to quality concern.

Read more

Zero-plagiarism guarantee

All our papers are written from scratch and according to your specific paper instructions. This minimizes any chance of plagiarism. The papers are also passed through a plagiarism-detecting software thus ruling out any chance of plagiarism.

Read more

Free-revision policy

We offer free revisions in all orders delivered as long as there is no alteration in the initial order instruction. We will revise your paper until you are fully satisfied with the order delivered to you.

Read more

Privacy policy

All data on our website is stored as per international data protection rules. This ensures that any personal data you share with us is stored safely. We never share your personal data with third parties without your consent.

Read more

Fair-cooperation guarantee

Ordering and sending money to us is an indication that you are purchasing our products and services. To have business talks laid out in the official language, you can check on our terms and conditions and get more information about this.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 20% with the discount code: LEMONADEPlace Order