Here is the formula for the PMPM break even

PMPM X Enrollees = (Enrollees X Utilization Rate X Variable Cost Per Unit) + Fixed Costs

if you need a profit or have allocated expenses, you need to add those to the right of the equation

Thanks

Problem 2: Given the information below, calculate the missing items in the capitation break even formulas. Number Total of Utilization Variable Indirect Desired Fixed Situation Members Cost PMPM Rate Cost/Unit Costs Profit 10% $23 1,500 $20,000 $25 1,400 $17,500 $15 10% 3 1,400 $17,500 $25 $6,000 $5,000