CEO expressed a concern about the variances in costs under inpatient capitated contract. He requested a financial analysis that would help explain these variances. Taking into consideration the request expressed by CEO and based on information presented in the financial data below, information

Financial Data for Director of Finance Department in a hospital setting Budget Actual Inpatient Costs $12,568,500 $16,613.13 50 Members 42,000 42,000 Admission Rate 0.070 0.095 Case Mix Index 0.90 0.85 Cost per Case [CM|= 1.0) $4,750 $4,900