FYI-This is finance course in healthcare, hence the question states capitated lives. I dont think "capitated lives" should hinder solving this question.

A local clinic created the following static budget table for the year 2015. Complete the table below by filling the blanks and creating a profit & loss statement under section IV

Section I-Volume Assumptions

FFS (fee for service)= 50,000 vists

Capitated lives= 30,000 members

Number of member-months= ?

Expected utilization per member-month= 0.25

Number of visits= ?

Total Expected Visits= ?

Section II- Revenue Assumptions

FFS= $30/visit (30x50,000 expected visits)=$1,500,000

Capitated lives= $3 PMPM (3x 360,000 membermonths)=$1,080,000

Total Expected Revenues= ?

Section III-Cost Assumptions

Variable Costs:

Labor (60,000 hrs at $25/hr)=$1,500,000

Supplies (2000,000 units at $1.5unit/hr)=$300,000

Total variable Cost = $1,800,000

Variable cost per visit= (1,800,000/140,000)=$12.8571429

Fixed Costs = $500,000

Total expected costs = ?

Section IV-Profit & Loss statement