Federal Nursing Home Administrator Practice Exam

What is payor mix related to in a nursing home context?

1. Residents categorized by acuity

2. Residents categorized by payment type

3. Staff salary structures

4. Types of insurance accepted

The correct answer is: Residents categorized by payment type

Payor mix refers to the distribution of the different sources of payment that a nursing home receives for resident care. In this context, it specifically pertains to how residents are categorized based on the type of payment or insurance they use to cover the cost of their care. This could include various types of payment sources such as Medicare, Medicaid, private insurance, or out-of-pocket payments. Understanding the payor mix is crucial for financial planning and ensuring that the facility remains financially viable while meeting the needs of its residents. The correct answer highlights the importance of recognizing that the payor mix reflects not only the types of insurance or payment methods employed but also has significant implications for the budget and reimbursement policies of the nursing home. A healthy payor mix allows facilities to manage their income effectively while providing the necessary services to meet the diverse needs of their residents.