What is the pmpm rate that bay pines must set to cover


Bay Pines Medical Center estimates that a capitated population of 50,000 would utilize 440 inpatient days per 1,000 enrollees at an average cost of $1,374 per day. Assume that , in addition to medical costs Dixie allocates 10% of the total premium for administrative and reserve costs.

What is the PMPM rate that Bay Pines must set to cover medical costs plus administrative and reserve expenses?

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