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What dollar effect did have on actual costs

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Question 1: Formulate your answer based on the below information. 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?

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

Reference no: EM132482247

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