Real-Life Math -- Solution
Occupancy statistics are used to determine the effectiveness of marketing efforts as well as to track cycles in caring for elderly people. The board of directors uses your numbers to determine what time of year more efforts need to be put into marketing and what time of year more money needs to be put into care resources.
In determining your quarterly occupancy statistics, you must first determine the occupancy statistics for each month. The nursing home has 150 single occupancy rooms. During the month of April, 137 of those rooms were occupied. During May, 142 of the rooms were occupied. And at the end of June, all 150 rooms were occupied. You also have a waiting list for future rooms that might become free.
First, you must determine what percentage of the rooms was filled during each month.
Percentage occupied in April = 137 / 150 x 100
Percentage occupied in April = 91.3
Percentage occupied in May = 142 / 150 x 100
Percentage occupied in May = 94.7
Percentage occupied in June = 150 / 150 x 100
Percentage occupied in June = 100
To determine the average occupancy during the quarter, add all of the percentages and divide by the number of percentages you have (3).
Average occupancy = (91.3 + 94.6 + 100) / 3
Average occupancy = 285.9 / 3
Average occupancy = 95.3 percent
So, 95.3 percent of your rooms were occupied during the April through June quarter.
Compare that quarter with the previous quarter, which had an occupancy rate of 98 percent.
98 - 95.3 = 2.7 percent
There was a 2.7 percent average occupancy decrease during the April through June quarter.
"We don't use a whole lot of math in this position," says Joleen Hoeschen. She is a medical records technician. "And if you do need it, it's usually basic addition and subtraction."