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General Hospital is considering entering a contract with CareShare HMO to provide all inpatient services for CareShare's 50,000 members. General Hospital has assembled the following

General Hospital is considering entering a contract with CareShare HMO to provide all inpatient services for CareShare's 50,000 members. General Hospital has assembled the following actuarial information: General 220 inpatient days per 1,000 $1,700 cost/day Surgical 150 inpatient days per 1,000 $3,000 cost/day Psychiatric 85 inpatient days per 1,000 $950 cost/day Maternity 70 inpatient days per 1,000 $1,900 cost/day Assuming that General Hospital needs to receive a premium that allows for administrative costs and a profit (risk) margin equal to 10 percent of the final PMPM premium, what is the minimum PMPM that General Hospital would be willing to accept? (Points : 2)

$100.00 $86.48 $96.09 $1,037.75 $95.13

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