You have been asked by management to explain the variances in costs under your inpatient capitated contract.
Question:
You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data is provided.
Problem 1: What dollar amount of the total variance is attributed to Enrollment Variance?Problem 2: What dollar effect did the increased admission rate have on cost?Problem 3: 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?Problem 4: Costs per case increased to $4,900 from a budgeted value of $4,750. This increased actual total costs by what amount?a) $400,000b) $570,000c) $970,000d) $600,000e) cannot calculate with given information
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins