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Historical data indicate that the covered population uses 500 inpatient days of acute care services per 1,000 members. Furthermore, the consortium's current average daily payment

Historical data indicate that the covered population uses 500 inpatient days of acute care services per 1,000 members. Furthermore, the consortium's current average daily payment for inpatient services is $2,800. However, the managed care company's data indicate that utilization management could reduce utilization into the 400-450/day range and that hospitals within the state currently have managed care plan contracts with per diem rates of $2,000 to $2,400. With this information in hand, calculate the appropriate base PMPM for inpatient services

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