1. Middleboro Community Hospital has been contacted by a regional employer to negotiate a contract for providing health services to a group of 50,000 employees. You have been asked to evaluate the terms of the contract and determine if the PMPM payment is acceptable. Category Inpatient Days per 1,000 enrollees 387 295 68 39 Medical Surgical OB Newborn Other Pediatric ICU/CCU Psychological Substance Abuse 34 71 18 36 Answer the following questions: 1. Using the table provided, calculate the minimum PMPM that is acceptable to Middleboro based upon a 20% load factor (administrative costs and profit). Memorial Hospital estimates that a capitated population of 90,000 would have the following base case utilization and total cost characteristics: Category Inpatient Days per 1,000 enrollees General Surgical Psychiatric Alcohol Drug Abuse Maternity 135 140 85 47 Average Cost per Day $1,250 $1,900 $850 S450 $1,750 53 In addition to medical costs, Memorial Hospital allocates 20 percent of the total premium for administration / reserves. What is the PMPM rate that Memorial Hospital must set to cover medical costs plus administrative expenses? 1. Middleboro Community Hospital has been contacted by a regional employer to negotiate a contract for providing health services to a group of 50,000 employees. You have been asked to evaluate the terms of the contract and determine if the PMPM payment is acceptable. Category Inpatient Days per 1,000 enrollees 387 295 68 39 Medical Surgical OB Newborn Other Pediatric ICU/CCU Psychological Substance Abuse 34 71 18 36 Answer the following questions: 1. Using the table provided, calculate the minimum PMPM that is acceptable to Middleboro based upon a 20% load factor (administrative costs and profit). Memorial Hospital estimates that a capitated population of 90,000 would have the following base case utilization and total cost characteristics: Category Inpatient Days per 1,000 enrollees General Surgical Psychiatric Alcohol Drug Abuse Maternity 135 140 85 47 Average Cost per Day $1,250 $1,900 $850 S450 $1,750 53 In addition to medical costs, Memorial Hospital allocates 20 percent of the total premium for administration / reserves. What is the PMPM rate that Memorial Hospital must set to cover medical costs plus administrative expenses