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. Use the following
| You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data is provided. Use the following data to calculate the variances. | ||
| Budget | Actual | |
| Inpatient Costs | $12,568,500 | $16,618,350 |
| Members | 42,000 | 42,000 |
| Admission Rate | 0.070 | 0.095 |
| Case Mix Index | 0.90 | 0.85 |
| Cost per Case (CMI = 1.0) | $4,750 | $4,900 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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
Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
4th Canadian edition
134724712, 134724713, 9780134779782 , 978-0134724713
