Week 4 - 3rd Party Analysis:

• Consider and analyze the budget variances on the tab. Create a Word document, providing a brief summary of your analysis.

B7 6348 E 3 A B D 1 VARIANCE ANALYSIS OF THIRD-PARTY PAYMENTS - MEDICARE 2 Consider and analyze the budget variances below. Create a brief explanation of this analysis. 3 4 5 Actual Budget Variance 6 Medicare Inpatient Revenue $ 74,038,628 $ 69,291,008 7 Medicare Inpatient Volume 6348 6500 8 Medicare Case Mix* 1.8440 1.6854 9 Medicare Base Rate $ 6,325$ 6,325 10 11 Volume Variance Component (VVC)** (1,620,344) 12 Intensity Variance Component (IVC) 6,367,964 13 14 $0.00 4,747,621 15 (0) 16 17 18 19 *Case mix index is typically listed using four decimal places. 20 **Note that VVC may also be called Discharge Volume. B7 6348 E 3 A B D 1 VARIANCE ANALYSIS OF THIRD-PARTY PAYMENTS - MEDICARE 2 Consider and analyze the budget variances below. Create a brief explanation of this analysis. 3 4 5 Actual Budget Variance 6 Medicare Inpatient Revenue $ 74,038,628 $ 69,291,008 7 Medicare Inpatient Volume 6348 6500 8 Medicare Case Mix* 1.8440 1.6854 9 Medicare Base Rate $ 6,325$ 6,325 10 11 Volume Variance Component (VVC)** (1,620,344) 12 Intensity Variance Component (IVC) 6,367,964 13 14 $0.00 4,747,621 15 (0) 16 17 18 19 *Case mix index is typically listed using four decimal places. 20 **Note that VVC may also be called Discharge Volume