Refer to the previous problem. Assume that a new care coordi…

Refer to the previous problem. Assume that a new care coordination initiative is expected to reduce inpatient utilization (Acute and Dual Diagnosis Inpatient Services) by 20%. (There would be no reduction in Step-Down Residential Program (Transitional) utilization.) The reduction in inpatient days (Acute and Dual Diagnosis Inpatient Services) would be offset by an equivalent increase in outpatient residential days, transferred to the Extended Residential Counseling program. What is the new PMPM rate after this shift in utilization?

Refer to the previous problem. The Finance Office of Gulf Co…

Refer to the previous problem. The Finance Office of Gulf Coast Medical Group (GCMG), a large, multispecialty physician group affiliated with a regional academic health system, reported $1,432,600 in direct departmental costs in 2024. These overhead costs must be allocated to GCMG’s five patient service departments using the direct method of cost allocation. The finance team has been instructed to evaluate cost allocation using two possible drivers: 1) number of bills submitted and 2) patient service revenue. In 2024, GCMG’s departments submitted 75,980 bills and reported $17,984,220 in total patient service revenues. What is the allocation rate if patient service revenue is used as the cost driver?

Consider the following 2024 data for Southside General Hospi…

Consider the following 2024 data for Southside General Hospital’s pulmonology department (in millions of dollars):   Static Budget Flexible Budget Actual Results Revenues $5.2 $5.0 $4.9 Costs $5.1 $4.9 $4.7 Profits $0.1 $0.1 $0.2   Calculate the profit variance. Do not include dollar sign.