Payer Number of admissions Avg Revenue per admission Variable cost per admission

Question

Payer

Number of admissions

Avg Revenue per admission

Variable cost per admission

FHP

$2000

$5000

$3000

Medicare

$5000

$4500

$4000

Commercial

$9000

$7000

$2500

Assume that General Hospital has the following three payer groups:

The hospital

  

Payer

     

Number of admissions

     

Avg Revenue per admission

     

Variable cost per admission

     

FHP

     

$2000

     

$5000

     

$3000

  

     

Medicare

     

$5000

     

$4500

     

$4000

     

Commercial

     

$9000

     

$7000

     

$2500

   Assume that General Hospital has the following three payer groups: The hospital's fix costs are $43 million Assume that the commercial plan has 100,000 covered lives. Half are going to be moved into a capitation plan. All utilization and cost data remain the same. What PMPM rate will the hospital have to charge to retain their same amount of net income? $5250 $5250 $49 none of the above

Explanation / Answer

C.$49

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