Last year our capitated contract covered 640000 lives and


Last year our capitated contract covered 640,000 lives and paid us $800 per member per month. In the coming year, we expect enrollment and PMPM to remain the same while our admissions from the enrollees are expected to drop by 4.5% from last year’s 32,000 and our variable cost per admission will decline from $4250 to $4100. What do we expect our revenue to be in the coming year? And why?

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Financial Management: Last year our capitated contract covered 640000 lives and
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