. Calculate Revenue Variances. Use variance analysis to calculate the price variance for each DRG, volume variance for each DRG and the budget revenue variance between the planned budgeted gross revenue and the net revenue (actual reimbursement received for services). Create a spreadsheet that shows each calculation and a summary that explains your results.

Assume that the following information is known about the budget for Anywhere Hospital:

Planned budget:

Budgeted patient volume: 500

Budgeted patient mix:

DRG 1 50%

DRG 2 30%

DRG 3 20%

Budgeted contribution margin:

DRG 1 $500

DRG 2 $200

DRG 3 $400

Actual results:

Actual patient volume: 450

Actual patient mix:

DRG 1 64%

DRG 2 20%

DRG 3 16%

Actual contribution margin:

DRG 1 $475

DRG 2 $250

DRG 3 $470