5 7 Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit Its sole payer, an HMO, has proposed an Analy annual capitation payment of $150 for each of its 20,000 members Past experience indicates the population served will average two visits per year 2 Construct the base case projected P L statement on the contract b Sketch two CVP analysis graphs for the clinic one with number of visits on the x axis and one with number of members on the x axis Compare and contrast these graphs with the one in Problem 5 3 d c What is the clinic's contribution margin on the contract How does this value compare with the value in Problem 5 3 b d What profit gain can be realized if the clinic can lower per member utilization to 1 8 visits FOTO Dad 5 7 Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit Its sole payer, an HMO, has proposed an Analy annual capitation payment of $150 for each of its 20,000 members Past experience indicates the population served will average two visits per year 2 Construct the base case projected P L statement on the contract b Sketch two CVP analysis graphs for the clinic one with number of visits on the x axis and one with number of members on the x axis Compare and contrast these graphs with the one in Problem 5 3 d c What is the clinic's contribution margin on the contract How does this value compare with the value in Problem 5 3 b d What profit gain can be realized if the clinic can lower per member utilization to 1 8 visits FOTO Dad

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5 7 Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit  Its sole payer, an HMO, has proposed an Analy annual capitation payment of $150 for each of its 20,000 members  Past experience indicates the population served will average two visits per year  2  Construct the base case projected P L statement on the contract  b  Sketch two CVP analysis graphs for the clinic  one with number of visits on the x axis and one with number of members on the x axis  Compare and contrast these graphs with the one in Problem 5 3 d  c  What is the clinic's contribution margin on the contract  How does this value compare with the value in Problem 5 3 b  d  What profit gain can be realized if the clinic can lower per member utilization to 1 8 visits  FOTO Dad  5 7 Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit  Its sole payer, an HMO, has proposed an Analy annual capitation payment of $150 for each of its 20,000 members  Past experience indicates the population served will average two visits per year  2  Construct the base case projected P L statement on the contract  b  Sketch two CVP analysis graphs for the clinic  one with number of visits on the x axis and one with number of members on the x axis  Compare and contrast these graphs with the one in Problem 5 3 d  c  What is the clinic's contribution margin on the contract  How does this value compare with the value in Problem 5 3 b  d  What profit gain can be realized if the clinic can lower per member utilization to 1 8 visits  FOTO Dad

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5.7 Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit. Its sole payer, an HMO, has

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