Simple Discounts Variance Analysis
Below are the calculations to perform a simple variance analysis of discounts against plan in a healthcare setting. Selected cells are color coded to make the calculation easier to understand. The input cells reside in the range E3:F4.
In the example, the components of gross revenue are volume, payer mix, and acuity. The discount rate, by definition, includes the payer mix and acuity components. As a result, the "plug" is volume.
Posted on March 10, 2008 | Filed under Healthcare | Comments (0) | Permalink
