HEALTHCARE FINANCE TOPIC

I have answered these questions, but I need a second opinion. Please explain why you choose that answer!

32. General Hospital is considering entering into a contract with CareShare HMO to provide all inpatient services for CareShare's 50,000 members. General Hospital has assembled the following actuarial information: Service Category General Surgical Psychiatric Maternity Inpatient Days per 1,000 220 150 85 70 Cost/Day $1,700 $3,000 $ 950 $1,900 Assuming that General Hospital needs to receive a premium that allows for administrative costs and a profit (risk) margin equal to 10 percent of the final per member per month (PMPM) premium, what is the minimum PMPM that General Hospital would be willing to accept? a. $ 86.48 b. $ 96.09 c. $ 95.13 d. $1,037.75 e. 100 36. The following profit information was taken from Eastside Hospital's budget data Static budget $1,200,000 Flexible budget $1,000,000 Actual results $ 500,000 What is the profit variance? (Hint: An unfavorable variance is identified by a minus sign.) a. -$200,000 b. -$500,000 c. -$700,000 d. $500,000 e. $700,000