Determine whether the physician made profit

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Reference no: EM133574172

Scenario: Regional North Clinic is contracted under an HMO plan called Freedom HMO. Under this contract, Dr. Zing has 300 patients who have signed up under his name as a primary care physician. Since this is an HMO plan, he is paid based off of a capitation payment. For each patient, Dr. Zing will get paid $25 per month. Question: How much does Dr. Zing get paid per month for all assigned patients? Apply what you have learned: If 150 patients came in to be seen in a given month and the total cost of an office visit with staff, supplies, and such equaling about $50.00 per patient, determine whether the physician made a profit or a deficit for the month. In your opinion, based off of what you have read, evaluate as to whether capitation would be a positive or negative payment structure for a physician office. List 2 positive and 2 negative reasons for the payment structure of capitation.

Reference no: EM133574172

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