What pmpm rate will the hospital have to charge

Assignment Help Other Subject

Reference no: EM133576900

Question: Assume that Valley Forge Hospital has only the following three payer groups:

Number of Admissions Average Revenue per Admission Variable Cost per Admission

Commercial. 1,000 $5,000 $3,000

PennCare 4,000 4,500 4,000

Medicare 8,000. 7,000 2,500

The hospital's fixed costs are $38 million.

a. What is the hospital's net income?

b. Assume that half of the 100,000 covered lives in the commercial payer group will be moved into a capitated plan. All utilization and cost data remain the same. What PMPM rate will the hospital have to charge to retain its net income calculated in part a?

Reference no: EM133576900

Questions Cloud

Review the wto and some of the key regional trading : Review the WTO and some of the key regional trading agreements. Which do you think are more effective in promoting free trade, the global or regional

Discuss a coping strategy that you have successfully used : Discuss a coping strategy that you have successfully used to navigate stressful life events, such as living through a pandemic and/or attending graduate school

Discussing the middle east in terms of war and religious : discussing the Middle East in terms of war and religious fanaticism, address the diversity and complexity of the people and the places in the Middle East.

How do sry and mif help in developing the sex organs : How do SRY and MIF help in developing the sex organs and hence determine the sex of a fetus?

What pmpm rate will the hospital have to charge : All utilization and cost data remain the same. What PMPM rate will the hospital have to charge to retain its net income calculated in part a

What energy source is utilized most during a long walk : What energy source is utilized most during a long walk?

Evaluate the suitability of different web services : Evaluate the suitability of different web services-based API architectural patterns for various mobile application and Internet of Things (IoT) use-cases

What new perspectives, information or awareness did i gain : What new perspectives, information or awareness did I gain from these Topic? How do I feel about it and did it help change my existing beliefs and attitudes

Economic impact and current trends in the use animals : Economic impact and Current trends in the use animals for commercial research. My stance in the mantter is that I oppose the use of animals for these practices

User Account

All Pages