Federal Nursing Home Administrator Practice Exam

Which term describes residents grouped based on their sources of funding for care?

1. Demographic mix

2. Care mix

3. Payor mix

4. Service mix

The correct answer is: Payor mix

The term that best describes residents grouped based on their sources of funding for care is "payor mix." This concept is crucial in understanding how a nursing home's financial resources are allocated and managed. The payor mix typically refers to the combination of different payment sources that cover the costs of resident care, such as Medicare, Medicaid, private insurance, and out-of-pocket payments by residents themselves. Understanding the payor mix is essential for nursing home administrators as it impacts budgeting, pricing strategies, and overall financial stability. A diverse payor mix can help mitigate financial risks associated with reliance on a single funding source, enabling the facility to maintain quality care and operational effectiveness. Other terms listed, such as demographic mix, care mix, and service mix, refer to different aspects of care and resident characteristics. The demographic mix focuses on the age, gender, and background of residents, while care mix pertains to the types of services provided based on residents' health needs. Service mix refers to the variety of services offered by the facility but does not specifically relate to how residents are funded.