Calculate the appropriate base PMPM for inpatient services

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Question - Historical data indicate that the covered population uses 500 inpatient days of acute care services per 1,000 members. Furthermore, the consortium's current average daily payment for inpatient services is $2,800. However, the managed care company's data indicate that utilization management could reduce utilization into the 400-450/day range and that hospitals within the state currently have managed care plan contracts with per diem rates of $2,000 to $2,400. With this information in hand, calculate the appropriate base PMPM for inpatient services?

Reference no: EM132984453

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