Proposed an annual capitation payment

Assignment Help Financial Management

Reference no: EM131073388

Grandview Clinic has fixed costs of $2.1 million and an average variable cost rate of $17 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $163 for each of its 18193 members. Past experience indicates the population served will average two visits per year. What profit gain can be realized if the clinic can lower per-member utilization to 1.8 visits?

Reference no: EM131073388

Questions Cloud

Structures and systems to deal with environmental : Research and review the case study "Ellen Zane: Leading Change at Tufts/NEMC,"and complete the following: Analyze how the organization used structures and systems to deal with environmental uncertainty and complexity.

Members for official purposes and essential personal message : I would like to remind all the staff members that they are not permitted to use the company properties such as computers and internet for any unnecessary works. The computers are provided to the staff members for official purposes and essential pe..

What do think is most pressing environmental health issue : What do you think is the most pressing environmental health issue in your community ( Evans/Augusta, Georgia)? Why? Please use data and other reliable information to support your perspective.

What is the smallest inflation rate : An investment plan includes a purchasing at the beginning of the year. The profits for this year are estimated to be $162, and the combined tax rate is 14%. The real interest rate is unknown, but assumed nonnegative. What is the smallest inflation ra..

Proposed an annual capitation payment : Grandview Clinic has fixed costs of $2.1 million and an average variable cost rate of $17 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $163 for each of its 18193 members. Past experience indicates the population ser..

Exchange rate and transaction and translation exposure : "Exchange Rate and Transaction and Translation Exposure" Please respond to the following: Analyze the major effects that relative interest and inflation rates could have on a country’s currency. Suggest the crucial steps that a company could take in ..

How tthis enhancement would benefit business outcomes : How tthis enhancement would benefit business outcomes.

Develop a comprehensive plan for improving care : Develop a comprehensive Plan for improving care

Expected contribution margin on the contract : Grandview Clinic has fixed costs of $2.04 million and an average variable cost rate of $15 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $131 for each of its 20402 members. Past experience indicates the population se..

User Account

All Pages