You have just taken a position as a financial analyst with the American Health Plan, a partially
Question:
You have just taken a position as a financial analyst with the American Health Plan, a partially integrated delivery system, contracting with major employers for healthcare services. The financial and utilization data in TABLE 17-21 were presented to you regarding the previous completed year.
You have been asked to make some sense of this data and factor the total variance of $1,156,000 ($10,406,000 –
$9,250,000) into some subaccounts that suggest possible causes. Please review these data and calculate variances for inpatient and outpatient into the following areas:
■ Enrollment variance
■ Utilization variance
■ Efficiency variance (note that there is no case-mix intensity standard)
Even in situations when one person does have responsibility for both components, the separation is useful because it provides information for focused management correction.
Step by Step Answer:
Essentials Of Health Care Finance
ISBN: 9781284094633
8th Edition
Authors: William O. Cleverley, James O. Cleverley