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TCO 4) Formulate your answer based on the below information. The intensity of care delivered dropped

/in /by

TCO 4) 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 Inpatient Costs $12,568,500 Members 42,000 Admission Rate 0.070 Case Mix Index 0.90 Cost per Case (CMI = 1.0) $4,750

Actual Inpatient Costs $16,618,350 Members 42,000 Admission Rate 0.095 Case Mix Index 0.85 Cost per Case (CMI = 1.0) $4,900

 
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