A Hospital's Case Mix Index Is Derived By

question 52

Multiple Choice

A hospital's case mix index is derived by:

• A) Organizing each DRG by rank, with the patients in the most frequently occurring DRG listed as #1, and so forth
• B) Adding all DRG relative weights together and then dividing by the total number of cases discharged in a given time period
• C) Neither a nor b; case mix index is assigned by the federal government using special software
• D) Both a and b

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Definitions:

Variance

A statistical measure of the dispersion of returns for a given security or market index, often used to gauge volatility.

Fairly Priced Securities

Securities that are priced accurately based on their inherent risk and expected return.

Alphas

The excess returns of an investment relative to the return of a benchmark index, indicating the added value by the portfolio manager.

Betas

A measure of a stock's volatility relative to the overall market; a reflection of its risk compared to the market.