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Construct the base case projected P-L statement

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Question - Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $150 for each of its 20,000 members. Past experience indicates the population served will average two visits per year. Construct the base case projected P&L statement on the contract.

Reference no: EM133039341

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