Cost Per Case: Inpatient Capitated Contract
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?
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