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How much should the hospital recognize as capitation revenue

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Question - A not-for-profit hospital and an insurance company signed a contract. The insurance company agreed to pay the hospital $9 million in capitation fees for the year July 1, 2015, through June 30, 2016. Between July 1, 2015 and December 31, 2015, the hospital provides services that it would bill $5.1 million at its standard rates. Between January 1, 2016, and June 30, 2016, it provides services that it would bill at $4.2 million. For the year ending December 31, 2015, how much should the hospital recognize as capitation revenue?

a) $0

b) 4.5 million

c) $5.1 million

d) $9 million

Reference no: EM132197337

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