Canadian Health Information Management Association Practice Exam

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What is the formula for calculating Cost per Weighted Case?

Cases divided by Weighted Cases X costs
Cost divided by number of cases
Costs divided by weighted cases
Number of cases divided by total costs

The correct answer is: Costs divided by weighted cases

The formula for calculating Cost per Weighted Case is based on the relationship between the total costs incurred and the weighted cases. The correct response, which states that costs are divided by weighted cases, is accurate because this formula provides a straightforward way to understand how much cost is associated with each weighted case. In healthcare finance, a weighted case takes into account the complexity and resource intensity of different cases, allowing for a more equitable distribution of costs. By dividing the total costs by the number of weighted cases, you can identify the average cost allocated to each one, which is critical for budgeting, financial reporting, and decision-making within healthcare organizations. This approach ensures that resource allocation reflects the actual burden of care rather than simply counting the number of cases, offering a more nuanced financial analysis that aligns with the varying degrees of patient care required.