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Grandview Clinic has fixed costs of $2.16 million and an average variable cost rate of $13 per visit. Its sole payer, an HMO, has proposed
Grandview Clinic has fixed costs of $2.16 million and an average variable cost rate of $13 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $133 for each of its 19,450 members. Past experience indicates the population served will average two visits per year. What is the clinic's expected contribution margin on the contract
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