Construct the base case projected

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Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit. Its sole payer, and HMO, has proposed an annual capitation payment of $150 for each of its 20,000 members. Past experience indicates that the population served will average two visits per year.

a. Construct the base case projected P & L statement on the contract.

Reference no: EM13977742

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