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Cost for primary care services

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Reference no: EM131727087

How do you find how the PMPM (per member per month) is figured out? I have tried a few different ways but it isn't correct. Below is one of the questions I have and I cannot get it right.

Assume that each of the 1,000 members of a managed care plan is expected to make four primary care visits per year. In addition, each primary care physician can handle 5,000 visits per year and requires $200,000 in total compensation. What is the PMPM (per member per month) cost for primary care services?

a. $13.33
b. $15.00
c. $16.66
d. $20.00
e. $23.33

Reference no: EM131727087

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