All America HMO pays its primary care physicians (PCPs) by capitation, but a percentage of the total

capitated amount is withheld and distributed to individual PCPs based on aggregate PCP performance.

The financial goal of importance to All America is to achieve total actual specialty care and hospital

costs less than budgeted. To this end, All America provides a financial incentive to its PCPs to

encourage careful referral of patients to these services. The financial incentive is based on the referral

gain or loss, defined as the difference between the actual and budgeted specialty care and hospital cost.

More specifically, All America uses the following risk-sharing rules:

Last year, All America's capitation payment to the PCPs was $20 PMPM, but 15 percent of this

amount was placed into the PCP risk pool. The budgeted amount for specialty and hospital costs was

$50 PMPM. At the end of the year, the following data were recorded for the four All America PCPs:

a. Calculate the total compensation of each PCP at the end of the year.