Purchase Solution

Cost Per Case: Inpatient Capitated Contract

Not what you're looking for?

Ask Custom Question

You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data is provided.
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

Costs per case increased to $4,900 from a budgeted value of $4,750. This increased actual total costs by what amount?

Purchase this Solution
Solution Summary

This solution calculates the amount of increased actual total costs for the inpatient capitated contract. Includes 1 additional resource.

Solution Preview

You're correct. When we calculate increases from variances, we start with what was planned or budgeted, which is called the standard amount. In this case, the standard amount is $4,750. We ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

View More Free Quizzes
Related BrainMass Solutions

  • Cost Concepts Healthcare Organization: Break even point

    Your hospital has agreed to provide all inpatient hospital services for 10,000 covered lives. You will receive $38 per member per month to cover all inpatient services.

  • Fixed Cost Analysis

    383424 Fixed Cost Analysis Company, a not-for-profit acute care facility has this cost structure for its inpatient services: Fixed costs $10,000,000 Variable cost per inpatient day $200 Charge (revenue) per inpatient day $1,000

  • Fixed Costs, Net Income, Capital Plan, & Utilization Reduction

    Assuming that the utilization reduction also occurs, what overall net income would be produced if the variable cost per admission for the capitated group were lowered to $2,200? See the attached Excel spreadsheet.

  • Premium Rate Case Study

    Note that the historical cost input data for facilities services is the per deim reimbursement rate for inpatient acute care, the daily cost for skilled nursing facility care, the daily cost for inpatient mental health care, the per case cost for hospital-based

  • Healthcare Finance: P&L Statement, Breakeven Point, Profits, Discount Proposals

    524057 P&L Statement, Breakeven Point, Profits, Discount Proposals 5.4) General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: Fixed costs $10,000,000 Variable cost per inpatient day

  • Medicaid Program State Comparison

    Physicians Fee For Service Capitated Payments Physicians Fee For Service Capitated Payments Negotiated Contractually Hospitals DRG Based Hospitals DRG Based Cost Based Negotiated Contractually Nursing Homes Per Diem Nursing Homes Per Diem

  • The Inpatient Prospective Payment System

    Per diem payments for each admission are case mix adjusted using a resident classification system known as resource utilization groups. Medicare uses the inpatient prospective payment system.

  • Conducting a Break-Even Analysis

    General Hospital has an inpatient volume of 482 per month and an outpatient volume of 836 per month.

  • Role provided by break-even point, major HMO, variances

    You will receive $38 per member per month to cover all inpatient services. It is anticipated that 93 admissions per 1,000 covered lives will be provided with an average length of stay equal to 5.0, or 465 days per 1,000.

View More Related Solutions