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Management Accounting in Health Care Organizations, 3rd Edition by David W. Young

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APPENDIX B

Solutions to the Practice Cases

Chapter 1 Practice Case: Central Valley Primary Care Associates

This case gives you an opportunity to think about the kinds of data needed to develop a capitation rate, which means you need to think about estimating morbidity patterns of a population, and the resulting resource requirements, on both an inpatient and an outpatient basis. As the case indicates, not only are there many considerations in developing a rate, but also physician organizations (such as group practices and independent practice associations [IPAs]) frequently do not have, and are not able to obtain easily, the information that they need to undertake an appropriate analysis. If you felt overwhelmed by the complexity of this task, ...

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