Reference no: EM133094748

Questions -

Q1. Winslow Primary Healthcare agrees to be compensated under capitation. They agree to take 1,000 client office visits per year at $200 per visit. Winslow's fixed cost is $50,000, and its variable cost per office visit is $150. How much profit would Winslow earn if 1,100 clients visit during the year?

Q2. Bainbridge hospital has one non-revenue department (Administration) and two revenue generating departments (Cardiology and Out Patient). The direct costs for each department are as follows: Administration costs are $100,000, Cardiology costs are $150,000, and Outpatient costs are $250,000. Administration costs are allocated 75% to Cardiology and 25% to Outpatient. Use the step-down allocation method to allocate the non-revenue department costs to the two revenue departments. What are the total allocated costs for Outpatient?

Q3. The Citizen Hines HMO uses primary care provider (PCP) contracts that set the PCP capitation rate at $15 per member per month (PMPM). Citizen Hines also contributes $45 PMPM to an institutional inpatient services risk pool and $30 PMPM to a specialist services risk pool. In addition, the contract includes a provision requiring a 20% withhold. If PCP Physician B has an expected $50,000 in annual compensation from Citizen Hines, what is the amount of Physician B's withhold?