Decision of Uncertainty Paper

Decision of Uncertainty Paper
Olga Belteton
December 17, 2012
Instructor: Richard La Valley

Decision of Uncertainty Paper
      The Senior Living Company provides services to the elderly specializing in caring for those with dementia.   Some of the patients are wealthy and cost is not an issue while others need assistance.   With the current changes in medical coverage today there may be a need to increase the fees or eliminate services that are unnecessary in order to accommodate all patients.   Raising fees for those patients where income is not an issue is not a problem.   It is raising the fees to those that already struggle and may opt to leave the facility for something more affordable.
      The facility offers many services that other facilities currently do not and this is what draws the clientele.   The idea is to research the services to see if they are being utilized by all patients, some patients or very few patients.   By establishing a foundation of what the company needs to consider the process of picking a sample follows.
      Research needed to be conducted to evaluate risk in increasing the fees of patients where income could be an issue.   This was done by taking a random sample of 50 patients across the facilities.   They were surveyed about the how much of an increase they would accept before looking for a different facility.   They were also asked questions about the various services offered at the facilities and which ones they use, how often or not at all.   They were also asked other questions to gain insight on other parts of the facility so that the company could also evaluate the other departments.   This included staff, nutrition, maintenance, security and the patients overall perception of what was being provided for them to live in the facility.
      The following information regarding fees was gathered:
Current Fees: range from 108.85 to 296.28 per day (attached detailed data sheet)
      The company figures that the...