Federal Nursing Home Administrator Practice Exam

How is the Cost Per Patient Day calculated?

1. By dividing total revenue by the number of patients

2. By adding total costs and census days

3. By dividing total costs by census days

4. By multiplying total census days by operational costs

The correct answer is: By dividing total costs by census days

The Cost Per Patient Day is calculated by dividing total costs by census days. This metric provides a clear understanding of the average cost incurred for each patient on a given day. By using census days, which reflect the total number of days patients were present in the facility, the calculation ensures that the resulting figure accurately represents the ongoing costs associated with providing care. This method allows nursing home administrators to analyze financial performance effectively, assess budget requirements, and make informed decisions regarding resource allocation. Understanding this calculation is crucial for managing expenses, optimizing operational efficiency, and maintaining regulatory compliance in healthcare settings. The other approaches, such as mixing revenue or operational costs inappropriately, do not accurately reflect the patient-specific cost dynamics and can misrepresent the financial health of the facility.