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Dr. Teen is thinking of entering into a capitated arrangement. Her fixed costs for the month to serve this population are $10,000. The average cost

Dr. Teen is thinking of entering into a capitated arrangement. Her fixed costs for the month to serve this population are $10,000. The average cost of services per member receiving services is $20. The number of members in the plan is 5,000. The percentage of members estimated to receive services each month is 25%. What is the PMPM (per member per month) rate Dr. Teen needs to charge to break-even the first month? $20 $70 $150 $220

$20

$70

$150

$220

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