HSM 340 Midterm Exam
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title of statement, name of entity, and unit of measurement<br />
name, title, specific date of statement, and unit of measurement<br />
7. Question : (TCO 2) Which of the following is the BEST example of a financial metric?<br />
Student Answer: Degree of innovation<br />
Employee empowerment<br />
Accreditation by the Joint Commission on Accreditation of Healthcare Organizations<br />
Total margin<br />
Length of stay<br />
1. Question : (TCO 4) Formulate your answer based on the below information. Costs per case increased<br />
to $4,900 from a budgeted value of $4,750. This increased actual total costs by what amount?<br />
You have been asked by management to explain the variances in costs under your inpatient capitated<br />
contract. The following data is provided. Use the following data to calculate the variances.<br />
Budget Actual<br />
Inpatient Costs $12,568,500 $16,618,350<br />
Members 42,000 42,000<br />
Admission Rate 0.070 0.095<br />
Case Mix Index 0.90 0.85<br />
Cost per Case (CMI = 1.0) $4,750 $4,900<br />
2. Question : (TCO 4)Based on the information below, assume that the only change in the original<br />
example data is that Blue Cross raises their discount to 20 percent. What price should be set?<br />
You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present<br />
budgetary data is presented below:<br />
Budgeted Procedures $10,000<br />
Budgeted Cost $400,000<br />
Desired Profit $80,000<br />
It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on<br />
average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining<br />
charge payers are summarized below:<br />
Payer Volume% Discount%<br />
Blue Cross 20 4<br />
Unity PPO 15 10<br />
Kaiser 10 10<br />
Self Pay 5 40<br />
50%<br />
3. Question : (TCO 4) What is the amount of variance that can be attributed to the difference between<br />
budgeted and actual volume?<br />
Use the following data to calculate the variances.<br />
The following information has been prepared for a home health agency.<br />
Budget Actual<br />
Wage Rate per Hour $16.00 $17.00<br />
Fixed Hours 320 320<br />
Variable Hours per Relative<br />
Value Unit (RVU) 1.0 1.1<br />
Relative Value Units (RVUs) 1,000 1,200<br />
Total Labor Hours 1,320 1,640<br />
Labor Costs $21,120 $27,880<br />
Cost per RVU $21.12 $23.23
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