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Johnmark1900
Johnmark1900, Associate Degree
Category: Multiple Problems
Satisfied Customers: 841
Experience:  I am a qualified Chartered Accountant, working as finance manager for reputable organization
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Formulate your answer based on the below information. The

Customer Question

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
Submitted: 10 months ago.
Category: Multiple Problems
Expert:  Johnmark1900 replied 10 months ago.

Hello

My name is***** can assist you. please advise me your deadline

Expert:  Johnmark1900 replied 10 months ago.

The answer is

( Budget case mix index - Actual case mix index) * Actual members

=( 0.90 - 0.85 ) * 42,000

= .05 *42,000

=2,100

There is a favorable effect on actual cost

Expert:  Johnmark1900 replied 10 months ago.

Any queries let me n=know, else POSITIVELY RATE.

Expert:  Johnmark1900 replied 10 months ago.

if satisfied, then POSITIVELY RATE, so that i am paid for my work.

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