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A not-for-profit hospital signs a contract with an insurance company in which the company agrees to pay it $6 million in capitation fees for the
A not-for-profit hospital signs a contract with an insurance company in which the company agrees to pay it $6 million in capitation fees for the year July 1, 2017, through June 30, 2018. Between July 1, 2017, and December 31, 2018, the hospital provides services that, at its standard rates, would bill at $3.4 million. Between January I , 2017 , and June 30, 2018, it provides services that it would bill at $2.8 milHon. For the year ending December 31 , 2017, the hospital should recognize capitation revenue of:
$0
$3 million
$3.4 million
$6 million
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