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Dixie Medical Center estimates that a capitated population of 50,000 would utilize 450 inpatient days per 1,000 enrollees at an average cost of $1,200 per

Dixie Medical Center estimates that a capitated population of 50,000 would utilize 450 inpatient days per 1,000 enrollees at an average cost of $1,200 per day. Assume that, in addition to medical costs Dixie allocates 10% of the total premium for administrative and reserve costs. What would be the PMPM rate if a utilization management program reduced utilization of inpatient days by 10% and the average cost per day were reduced by 10%?

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