6Revenue Budget -Capitation: There are currently 35,000 members covered in a contract with IndyHMO. The pediatric unit where you work is planning a renegotiation effective next January. These negotiations will end up increasing the number of members in 15%, and reducing the PMPM price from $25 to $23. A crucial assumption is to keep the utilization rate at 5%. There are two type of visits in the pediatric unit: Routine (last 30 minutes on average), and Complex (last 1 hour on average). You have to calculate the budgeted net revenue for next January.