you have been asked to explain variances in cost under inpatient capitated contract. 1. what dollar amount of the toal variance is attributed to enrolment variance. what dollar affect did the increased admission rate have on cost? budget actual inpatient cost 12,568,500 16618350 members 4200 4200 admission rate 0.07 0.095 case mix index 0.9 0.85 cost per case (CMI = 1.0) 4750 4900

you have been asked to explain variances in cost under inpatient capitated contract. 1. what dollar amount of the toal variance is attributed to enrolment variance. what dollar affect did the increased admission rate have on cost? budget actual inpatient cost 12,568,500 16618350 members 4200 4200 admission rate 0.07 0.095 case mix index 0.9 0.85 cost per case (CMI = 1.0) 4750 4900

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 4MCQ: In the cost formula, the term 128,000,000 a. is the total variable cost. b. is the dependent...

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In the cost formula, the term 12,000 a. is the variable rate. b. is the dependent variable. c. is the independent variable. d. is the intercept. e. cannot be determined from the above formula. Use the following information for Multiple-Choice Questions 3-4 through 3-7: The following cost formula was developed by using monthly data for a hospital. Total Cost = 128,000,000 + (12,000 Number of Patient Days)
you have been asked by management to explain variances in cost under inpatient capitated contract. the intensity of care delivered dropped from a budgeted case mix of 0.90 to an actual case mis of 0.85. what dollar effect did this have on actual cost. cost per case increased 4900 from budgeted value of 4750. this increased actual total cost by what amount? budget actual inpatient cost 12,568,500 16618350 members 4200 4200 admission rate 0.07 0.095 case mix index 0.9 0.85 cost per case (CMI = 1.0) 4750 4900
7. Given the following information, decompose the payor's inpatient costs variance. Determine how much of the unfavorable variance is driven by shifts in price, intensity of usage, and more membership? YTD Costs # Inpatient Days Cost per Day Days per member month MMOS Actual 2,100,000 Total 2,100 1000.00 0.0191 110,000 Membership Price Intensity Impatient Costs Budget 1,662,500 437,500 1,900 875.00 0.0202 94,000 Variance (Act - Bud) 437,500 200 125 (0.00112) 16,000 % % % 100%
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