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1) Pansy Meadows Primary Care Clinic provides routine diagnostic and treatment services for common illnesses. Assume they see 1000 patients per month for office
1) Pansy Meadows Primary Care Clinic provides routine diagnostic and treatment services for common illnesses. Assume they see 1000 patients per month for office visits. (We have not looked at data in this way in class. Think about what it is telling you and try to logic your way through it.) % of patients Average Reimbursement per Payer Medicare 40% patient $65 Medicaid 20% $20 Commercial Insurance 40% $75 A) What is Pansy Meadow Primary Care Clinic's total revenue per month? B) Assume that PMPCC's fixed costs are $25000 per month and their variable costs are $10 per office visit. What is their monthly profit (loss)? C) What would happen to your profitability of the commercial insurance company changed their reimbursement rate to $65? D) What if the Commercially Insured Patients were all covered by a capitated contract. Instead of being reimbursed per service, (this is not changing the total number of office visits PMPCC treats), they are paid by the commercial insurance company $2 PMPM to be available to provide services. i. What are PMPCC's monthly revenue ii. What is PMPCC's monthly profit/loss?
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