A large corporation that runs nursing homes estimates that changes to Medicare will result in lower.

A large corporation that runs nursing homes estimates that changes to Medicare will result in lower.

A large corporation that runs nursing homes estimates that changes to Medicare will result in lower payments by Medicare to nursing homes for​ short-term stays by patients that require therapy or care upon leaving hospitals. Assume the corporation is considering expanding the number of​ “beds” it offers at its nursing homes.  Given the changes to​ Medicare, if the marginal benefit of offering an additional bed is $7 comma 0007,000 and the marginal cost is $4 comma 0004,000 per​ bed, then the corporation should should not offer additional beds.
Mar 30 2022 01:33 PM

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