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Health Care Finance week 5 Application Assignment

For this week’s Application Assignment, open the Variance Analysis Case Study and read the description and questions provided on the first spreadsheet. Then, use the data provided in the “Revenues” and “Expenses” spreadsheets to perform a variance analysis. having a problem downloading the file…but here is the basic work…this is a health care finance class in week 5, using the book Healthcare finance by Louis C. Gapenski, Chapter 8. The subsequent two spreadsheets provide workload (expressed as relative weighted products (RWPs) for inpatient care:, revenue, and expense data for Schumpert Medical center covering their fiscal years 2010 and 2011. The data includes FY10 actual worlklod, revenues, and expenses: FY11 forecasted workload , revenues, and expenses: and FY11 year to date workload, revenues, and expenses. The inpatient product lines worksheet provides further details on the types of services provided within each major service line. Using the available data, perform a variance analysis on Schumpert Medical Center and answer the following Questions.1. What was the hopitals orginal profit forecast (assume away any issues with depreciation, taxes, etc.)? halfway through the fiscal year, what is the hospitals revised projection for FY11 profits?

Answer:

2. Which inpatient service lines are overbudget? which product lines are overbudget after accounting for workload increases?

Answer

3 What actions would you take at the mid year point if you were a free for service hospital? in other words, where are the problem areas on which you would focus your attention, and who might provide ideas for “best practices” based on their performance?

Answer

4 What actions would you take at the mid year point if you were a capitated hospital? In this case, the revenue spreadsheet would be replaced with an overall budget of $50 million with which to operate (rather than being able to bill for each episode of patient care). Federal, State, county and city hospitals normally operate under a capped budget. Additionally, many HMOs also operate under a fixed per member, pe month (PMPM) capitated process.
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