Question

. Calculate Revenue Variances. Use variance analysis to calculate the price variance for each DRG, volume variance for each DRG and the budget revenue variance between the planned budgeted gross revenue and the net revenue (actual reimbursement received for services). Create a spreadsheet that shows each calculation and a summary that explains your results.

Assume that the following information is known about the budget for Anywhere Hospital:

Planned budget:

Budgeted patient volume:           500

Budgeted patient mix:         

     DRG 1                                    50%

     DRG 2                                    30%

     DRG 3                                    20%

Budgeted contribution margin:                 

     DRG 1                                  $500

     DRG 2                                  $200

     DRG 3                                  $400

Actual results:

Actual patient volume:                450

Actual patient mix:

    DRG 1                                     64%

    DRG 2                                     20%

    DRG 3                                     16%

Actual contribution margin:

    DRG 1                                   $475

    DRG 2                                   $250

    DRG 3                                   $470

Answer 1

1	2	3	4	5	6	7	8	9
	budgeted	Nos	per patient revenue	Total Revenue(4*3)	Acctual	Nos	per patient revenue	total revenue(7*8)
Total no. of paitents	500				450
DRG1	50%	250	500	125000	64%	288	475	136800
DRG2	30%	150	200	30000	20%	90	250	22500
DRG3	20%	100	400	40000	16%	72	470	33840
Total				195000				193140

patient rate veriance	Patient volume veriance	total patient veriance
acctual patient (AR-ST R)	Sr(accutal ptietn-budgeted)	Acctual revenue-budgeted revenue
-7200	31500
4500	-9000
5040	-7200
2340	15300	17640
faverable	faverable	favarable