A hospital had capitation agreements with several health maintenance organizations to provide services. The hospital received 12 million or capitation fees for the year. The hospital also calculated that: (a) its costs to provide these services were $11.8 million, and (b) the value of these services at established billing rates were $16 million How should the hospital report this information on the face of its financial statements? O Report $16 million as patient service revenue and deduct $4 million in a separate item labeled adjustment for capitation premiums Report premium revenue of $12 million as a separate item of revenue, Report $200,000 as a separate item of revenue, labeled net premium revenue. Report premium revenue of $12 million as a separate item of revenue, and report 54 million as patient service revenue, for a total of $16 million of revenue