some text

Case 7 questions cascades mental health clinic

Cases in Healthcare Finance                                                                                                   Case Questions

 

 

CASE 7 QUESTIONS

 

 

CASCADES MENTAL HEALTH CLINIC

 

Variance Analysis

 

 

Hint: Because of the large number of variances involved, this case can quickly become unmanageable. The best way to deal with this problem is to focus on the variance structure provided in Exhibit 7.5 of the case. The spreadsheet model for this case uses this structure, which divides the variances into two general categories: revenues and costs. Most of the analysis focuses on costs, and the variance definitions used in the model are such that a negative variance means costs are greater than expected.

 

1.     What is the aggregate profit (total) variance for 2013 for the business as a whole? Interpret your results.

 

2.     What is the profit (total) variance for each of the four product lines? Interpret your results.

 

3.     Decompose the profit (total) variance for the aggregate organization and for each product line into revenue and cost variances. Interpret your results.

 

4.     Decompose the revenue variances into enrollment and rate variances. Interpret your results.

 

5.     Decompose the cost variances into volume and management variances. Interpret your results.

 

6.     Now focus on the volume variances. Break these down into enrollment and utilization variances, both in the aggregate and for the four product lines. Interpret your results.

 

7.     Now focus on the management variances. Note that the case does not contain data related to supplies costs or fixed costs, so the management variances are, in reality, staffing variances. Break down the staffing variances into rate and efficiency variances both for each product line and, within each product line, by inpatient and outpatient services. Interpret your results.

 

8.     Summarize the results of your variance analysis. In this summary, focus on the underlying meaning of the numbers as opposed to the numbers themselves.

 

9.     Finally, what are your recommendations for management action to counter the adverse financial trends experienced in 2013?

 

 

10.  In your opinion, what are three key learning points from this case?

Order a unique copy of this paper
(550 words)

Approximate price: $22

Place Order
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency