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Calculate trinity net profit under capitation

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Problem 1: Trinity Hospital's fee-for-service is $2,500 under a prospective payment system. Under a capitation reimbursement system, Trinity must cover 2000 patients. Its annual fixed costs are $2,600,000 and its variable cost per admission is $1,200. Calculate Trinity's net profit under Capitation if patient admissions are 2,100.

Group of answer choices

Option 1: -$130,000

Option 2: $130,000

Option 3: -$120,000

Option 4: $120,000

Reference no: EM133007259

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