Question

Last year's food costs for a 100-bed facility were $146,820. The facility had an average occupancy rate of 85% that year. What was this facility's food cost per patient day (PPD)?

Answer 1

The food cost per patient day (PPD) at the facility is approximately $4.73, calculated by dividing the annual food costs by the total number of patient days, considering an 85% average occupancy rate for a 100-bed facility.

Step-by-step explanation:

To calculate the food cost per patient day (PPD) for the facility, we must first determine the total number of patient days.

Since the facility has 100 beds and an average occupancy rate of 85%, we can calculate the average number of occupied beds per day.

This is 100 beds × 85% = 85 occupied beds per day.

Over the course of a year (365 days), this equates to 85 occupied beds/day × 365 days/year = 31,025 patient days/year.

The total food costs for the year were $146,820.

Therefore, the food cost per patient day is calculated by dividing the total annual food costs by the total number of patient days: $146,820 / 31,025 patient days = approximately $4.73 PPD.