price-to-acuity

name: price-to-acuity description: "Build acuity-based pricing that captures the care cost by level, instead of a flat rate, to protect margin. Reach for this on a pricing question."

Skill: Price to acuity

A flat rate under-charges high-acuity residents.

Step 1 — Define acuity levels

Care-need tiers and the hours each implies (§3 #2).

Step 2 — Cost the care by level

The labor and service cost per acuity tier (§3 #3).

Step 3 — Set level-based rates

Price each level to cost plus margin.

Step 4 — Find the under-priced

Surface where current flat pricing loses money.

Output

An acuity-level definition, the care cost by level, level-based rates, and the under-priced gap.