Test Your Knowledge

Direct Costs and Overhead Expenses

• Direct costs for a home care agency are expenses that can be directly attributed to a specific patient or service, such as caregiver wages and travel expenses.

Calculating Overhead Expenses

• The purpose of calculating overhead expenses for a home care agency is to determine the costs associated with running the business, including administrative expenses, marketing, and insurance.

Gross Profit Margin

• The recommended gross profit margin for a home care agency is not specified, but a high gross profit margin indicates that the agency is profitable and able to absorb fluctuations in revenue or expenses.