Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data is provided. Budget Actual $12,568,500
You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data is provided. Budget Actual $12,568,500 $16,618,350 Inpatient Costs Members Admission Rate Case Mix Index Cost per Case (CMI = 1.0) 42,000 0.070 0.90 $4,750 42,000 0.095 0.85 $4,900 7. What dollar amount of the total variance is attributed to Enrollment Variance? 3. What dollar effect did the increased admission rate have on cost? The intensity of care delivered dropped from a budgeted case mix of 0.90 to an actual case mix of 0.85. What dollar effect did this have on actual costs? 5. Costs per case increased to $4,900 from a budgeted value of $4,750. This increased actual total costs by what amount
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started