Hsm-340 Health Services Finance Midterm Exam Answers Essay
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HSM-340 Health Services Finance Midterm Exam Answers
Question 1.1. (TCO 4) Which of the following is part of a statistics budget? (Points : 5)
Responsibility for estimation
All of the above
Question 2.2. (TCO 4) Which budgetary issue causes the most strife in all areas of a health care organization? (Points : 5)
Setting volume levels
Allocation of indirect costs
Deciding whether to use a fixed or flexible budget
Question 3.3. (TCO 4) Effectiveness is a relationship between: (Points : …show more content…
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.
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
(Points : 10)
Question 2.2. (TCO 4) Based on the information below, what rate must be set to generate the required $80,000 in profit in the preceding example?
You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below:
Budgeted Procedures $10,000
Budgeted Cost $400,000
Desired Profit $80,000
(Points : 10)
Question 3.3. (TCO 4) What is the amount of variance that is attributed to the change in labor productivity?
Use the following data to calculate the variances.
The following information has been prepared for a home health agency.
Wage Rate per Hour $16.00 $17.00
Fixed Hours 320 320
Variable Hours per Relative
Value Unit (RVU) 1.0 1.1
Relative Value Units (RVUs) 1,000 1,200
Total Labor Hours 1,320 1,640
Labor Costs $21,120 $27,880
Cost per RVU $21.12 $23.23
Budgeted costs at actual volume would be $25,344 ($21.12 × 1,200), and…