Calculate the Revenue Quantity AND Revenue Price Variance for (a) Patient Fees and (b) Insurance Reimbursements
for 2002. if these variances are favorable or unfavorable.
1. Expenditure quantity variance for patients fees 2002
2. Expenditure price variance for patient fees 2002
3. What does this tell us about the patient revenues?
4. Expenditure quantity variance for insurance reimbursement 2002
Please include a detailed explanation. Thank you!
Exhibit 3 St. Xavier Healing Touch Hospital Operating Data 2001 budget 2001 actual 2002 budget 2002 actual 11,000 49 # of patients treated # of doctors Days of operation Insurance reimbursement/patient Legal Average cost of supplies/unit Supply units consumed 16,000 52 361 613 1,000,000 40 50,000 12,500 50 360 1,040 360 1,000 15,500 52 362 645 400,000 45 33,333 25 40,000 36,666 Salary per doctor Fee per patient 81,633 236 86,538 175 80,000 264 76,923 226 C. Calculate the Revenue Quantity AND Revenue Price Variance for (a) Patient Fees; and (b) Insurance Reimbursements for 2002. State if these variances are favorable or unfavorable. [6 sections] 1. Expenditure quantity variance for patients fees 2002 2. Expenditure price variance for patient fees 2002 3. What does this tell us about the patient revenues? 4. Expenditure quantity variance for insurance reimbursement 2002 5. Expenditure price variance for insurance reimbursement 2002 6. What does this tell us about insurance reimbursement at Healing Touch? Exhibit 2 St. Xavier Healing Touch Hospital Budget Statement ($ million) 2001 budget 2001 actual 2002 budget 2002 actual 2.6 2.8 Revenue Patient Fee Medicaid Insurance Reimbursements Federal Grants Total Revenue 3.3 1.4 13.0 1.1 11.0 3.2 17.9 1.0 9.8 3.2 16.8 3.5 1.3 10.0 2.0 16.8 3.2 20.9 n 3.0 4.0 4.0 o Expenses Nursing and Admin Wages Doctors Salaries Rent Leases Consultants fees Supplies Utilities Misc. Total Expenses 1.0 No -ajai 2.5 crono 3.0 1.1 0.5 1.0 0.5 0.5 14.1 0.5 1.0 17.0 0.5 0.8 0.5 17.6 15.6 Operating Profit/(Loss) 3.8 (0.2) 5.3 (0.8) Exhibit 3 St. Xavier Healing Touch Hospital Operating Data 2001 budget 2001 actual 2002 budget 2002 actual 11,000 49 # of patients treated # of doctors Days of operation Insurance reimbursement/patient Legal Average cost of supplies/unit Supply units consumed 16,000 52 361 613 1,000,000 40 50,000 12,500 50 360 1,040 360 1,000 15,500 52 362 645 400,000 45 33,333 25 40,000 36,666 Salary per doctor Fee per patient 81,633 236 86,538 175 80,000 264 76,923 226 C. Calculate the Revenue Quantity AND Revenue Price Variance for (a) Patient Fees; and (b) Insurance Reimbursements for 2002. State if these variances are favorable or unfavorable. [6 sections] 1. Expenditure quantity variance for patients fees 2002 2. Expenditure price variance for patient fees 2002 3. What does this tell us about the patient revenues? 4. Expenditure quantity variance for insurance reimbursement 2002 5. Expenditure price variance for insurance reimbursement 2002 6. What does this tell us about insurance reimbursement at Healing Touch? Exhibit 2 St. Xavier Healing Touch Hospital Budget Statement ($ million) 2001 budget 2001 actual 2002 budget 2002 actual 2.6 2.8 Revenue Patient Fee Medicaid Insurance Reimbursements Federal Grants Total Revenue 3.3 1.4 13.0 1.1 11.0 3.2 17.9 1.0 9.8 3.2 16.8 3.5 1.3 10.0 2.0 16.8 3.2 20.9 n 3.0 4.0 4.0 o Expenses Nursing and Admin Wages Doctors Salaries Rent Leases Consultants fees Supplies Utilities Misc. Total Expenses 1.0 No -ajai 2.5 crono 3.0 1.1 0.5 1.0 0.5 0.5 14.1 0.5 1.0 17.0 0.5 0.8 0.5 17.6 15.6 Operating Profit/(Loss) 3.8 (0.2) 5.3 (0.8)
