Which term is described as the increasing costs due to higher resident acuity?

Which term is described as the increasing costs due to higher resident acuity?

• A. Cost Creep
• B. Amortization
• C. FICA
• D. Assets

Answer: (A)

Costs rise as resident care gets more intense, because higher acuity means more staffing hours, more specialized equipment, and often longer stays. This gradual increase in expenses tied to greater care needs is described as cost creep. Amortization is about spreading the cost of an asset over its useful life, FICA is a payroll tax, and assets are the resources a facility owns. So the rising costs driven by higher resident acuity best fit cost creep.

Costs rise as resident care gets more intense, because higher acuity means more staffing hours, more specialized equipment, and often longer stays. This gradual increase in expenses tied to greater care needs is described as cost creep. Amortization is about spreading the cost of an asset over its useful life, FICA is a payroll tax, and assets are the resources a facility owns. So the rising costs driven by higher resident acuity best fit cost creep.