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ou 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

ou 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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