Assuming that the utilization reduction also occurs

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Reference no: EM13987853

Assume that Valley Forge Hospital has only the following three payer groups:

Payer Number of Average Revenue Variable Cost Revenues per Admission

PennCare 1,000 $5,000 $3,000

Medicare 4,000 4,500 4,000

Commercial 8,000 7,000 2,500

Assuming that the utilization reduction also occurs, what overall net income would be produced if the variable cost per admission for the capitated group were lowered to $2,200?

Reference no: EM13987853

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