Here are the 2011 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars):
Static Budget Flex Enrollment/Util. Budget Flex (Enrollment( Budget Actual Results
$425 $200 $180 $300
a. What does the budget data tell you about the nature of Wondover's patients. Are they capitated of fee-for-service? (see note to 8.7)
b. Calculate and interpret the following variances:
• Revenue variance
• Volume variance
• Price variance
• Enrollment variance
• Utilization variance