Grandview clinic has fixed costs of 204 million and an, Financial Management

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Grandview clinic has fixed costs of 204 million and an

Grandview Clinic has fixed costs of $2.04 million and an average variable cost rate of $15 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $131 for each of its 20402 members. Past experience indicates the population served will average two visits per year. What is the clinic's expected contribution margin on the contract?

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Financial Management: Grandview clinic has fixed costs of 204 million and an

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