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HSM 340 MIDTERM

HSM 340 MIDTERM.

 

 

 

 

 

 

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

 

Question 2.

Budgeted Procedures $10,000
Budgeted Cost $400,000
Desired Profit $80,000
Payer Volume% Discount%
Blue Cross 20 4
Unity PPO 15 10
Kaiser 10 10
Self Pay 5 40
50%

 

Question 3.

Budget Actual
Wage Rate per Hour $16.00 $17.00
Fixed Hours 320 320
Variable Hours per Relative
Value Unit (RVU)		 1.0 1.1
Relative Value Units (RVUs) 1,000 1,200
Total Labor Hours 1,320 1,640
Labor Costs $21,120 $27,880
Cost per RVU $21.12 $23.23

 

Question 4.

 

Question 5.

 

Question 6.

 

Question 7.

HSM 340 MIDTERM

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