posted by Karam .
You have been asked by management to explain the variances in cost under your inpatient
capitated contract. The following data is provided:
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
What dollar amount of the total variance is attributed to enrollment variance?
(c) None of the above
What dollar effect did the increased admission rate have on cost?
The intensity of care delivered dropped from a budgeted case rate of 0.90 to an actual case mix of
0.85. What dollar effect did this have on costs?