HSM 340 Week 4 Assignment | Devry University
- Devry University / HSM 340
- 14 Dec 2021
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- Healthcare Assignment Help / General healthcare Program
HSM 340 Week 4 Assignment | Devry University
Week 4: Homework
·
Problem 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 |
Problem 2. Based
on the information below, what rate must be set to generate the required
$80,000 in profit in the preceding example?
You have been asked to establish a pricing structure for radiology on a
per-procedure basis. Present budgetary data is presented below:
|
Budgeted Procedures |
10,000 |
|
Budgeted Cost |
$400,000 |
|
Desired Profit |
$80,000 |
It is estimated that Medicare patients comprise 40 percent of total radiology
volume and will pay on average $38.00 per procedure. Approximately 10 percent
of the patients are cost payers. The remaining charge payers are summarized
below:
|
Payer |
Volume% |
Discount% |
|
Blue Cross |
20 |
4 |
|
Unity PPO |
15 |
10 |
|
Kaiser |
10 |
10 |
|
Self Pay |
5 |
40 |
|
|
50% |
|
Problem 3. What
is the amount of variance that is attributed to the difference between the
budgeted and actual wage rate per hour?
Use the following data to calculate the variances.
The following information has been prepared for a home health agency.
|
|
Budget |
Actual |
|
Wage Rate per Hour |
$16.00 |
$17.00 |
|
Fixed Hours |
320 |
320 |
|
Variable Hours per Relative |
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 |
Budgeted costs at actual volume would be $25,344 ($21.12 × 1,200), and the
total variance to be explained is $2,536 Unfavorable ($27,880 - $25,344). Be
sure to specify whether the variance is favorable or unfavorable.
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