PMPM Rate Assignment | Top Universities

How do you find the PMPM Rate and Complete the Table correctly?

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Valley Forge has the following three payor groups: Variable Cost per Avg Revenue per Admissions Admission Admission Payer $6,000 $3,000 Commercial 2,000 $3,500.00 PennCare 5,000 5,000 $3,000.00 Medicare 9,000 7,000 The hospitals fixed costs are $40,000,000

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a. Complete the following table, and, determine the hospital's net income. Contribution Avg Rev per Total Revenue by Ttl Variable VC per Admissions Admission Admission Costs Margin $6,000,000 Payer $6,000 $12,000,000 $3,000 $6,000,000 Commercial 2,000 $7,500,000 $36,000,000 $49,500,000 25,000,000 PennCare 5,000 5,000 3,500 17,500,000 Medicare 9,000 7,000 63,000,000 3,000 27,000,000 $100,000,000 $9,500 $50,500,000 TOTAL 16,000 18,000 $60,000,000 NET INCOME Total Revenue – expense b. Now, assume that half of the 100,000 cove red lives in the commercial payer group will be moved to a capitated plan. All utlization and cost data remain the same. Complete the table below and determine the PMPM rate the hospital have to charge to retain the same Net Income calculated in part a. Contribution Ttl Variable Avg Rev per VC per Admissions Margin Admission Revenue by Payer Admission Costs $6,000 $3,000 Commercial FFS 2,000 $3,000 $6,000 Commercial Capitated 25,000,000 $3,500.00 $3,000.00 17500000.00 PennCare 5,000 5,000 7,500,000 Medicare 9,000 27000000.00 36,000,000 7,000 63,000,000 TOTAL PMPM rate. Get Accounting homework help today

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