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False 11. When a dermatology clinic contracted with an HMO, an enrollment base of 80,000 enrollees was budgeted. The HMO expected 1 in 4 of
False 11. When a dermatology clinic contracted with an HMO, an enrollment base of 80,000 enrollees was budgeted. The HMO expected 1 in 4 of covered enrolled members to use the dermatology services per month. The dermatology clinic's business manager looked at her monthly figures and saw that for the month there was a $70,000 unfavorable variance between budget and actual costs. She noted that the number ofenrolled members had increased by 5% over the budgeted amount, and that 1 in 3 of the total HMO members had used the dermatology services per month. Aetal nd bg nhl saisic are pree(12 points) Enrollees Use Rate Visits Cost Cost Per Visit Budgeted 80,000 0.25 20,000 $200,000 Actual 84,000 0.3333 28,000 $270,000 $9.643 $10.00 4
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