Student Name:
Barb Johnson
Textbook: Management for the Health Information Professional. 2nd Edition
Objective:
Perform variance analysis (percentage of change) between specified HIM budget line items from FY2018 and
FY2019.
Instructions:
Review the case study and Excel spreadsheet template found in content to calculate variances as indicated in the
scenario. Information identified will be included in your budget justification for presentation to a budget committee.
Calculate the following:
(round to the nearest tenth) (Show your calculations used and whether there was an increase,
decrease, etc.).
Upload your completed variance analysis document to the Ch. 4 Case Study Assignment Folder.
1
What is the percentage of increase or decrease in the total salaries/wages/benefits for the
entire HIM department from FY2018 to FY2019?
Answer
1759,850-1377,380=382,472
382,470/1377,380=0.277
28% INCREASE
= 27.76%
2
What is the percentage of increase or decrease in the coders’ total salaries/wages/benefits for
all coding positions combined (I, II, III) from FY2018 to FY2019?
Answer
797,880-427,000=370,880
370,880/427,000=0.869
87% INCREASE
3
What is the percentage of increase or decrease in the use of outsourced coding services from
FY2018 to FY2019?
Answer
105,000-75,000=30,000
30,000/75,000=0.4
40% INCREASE
4
What is the percentage of increase or decrease in the use of outsourced transcription services
from FY2018 to FY2019?
Answer
157,500-250,000=92,500
92,500/250,000=3.7
5
What is the percentage of increase in the ROI copying fees from FY2018 to FY2019?
Answer
11,000-10,000=1,000
1,000/10,000=0.1
10% INCREASE
6
What is the percentage of increase in the physician office coding contract from FY2018 to
FY2019?
Answer
32,000-30,000=2,000
2,000/30,000=0.67
7% INCREASE
