Need c and d answered that Valley ForgHspital has only...
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Need c and d answered
that Valley ForgHspital has only the following three payer groups: Number of Average Revenue Variable Cost per Admission $3,000 4,000 2,500 Admissionsper Admission Commercial PennCare Medicare 1,000 4,000 8,000 $5,000 4,500 7,000 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 anc cost data remain the same. What PMPM rate will the hospital have to charge to retain its Part a net income? c. Wh at overall net income would be produced if the admission rate of the capitated group were reduced from the commercial level by 10 percent d. Assuming ing that the utilization reduction also occurs, wh net income would for the e produced if the variable cost per admission produc e capitated group were lowered to apitated population of total cost
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