Last year, Managed Care's capitation payment to the PCPs was $20 Per Patient Per Month (PPPM), but 15 percent of this amount was placed into the PCP risk pool. The budgeted amount for specialty and hospital costs was $50 PPPM. At the end of the year, the following data were recorded for the four PCPs at Managed Care: Number of referred patients Actual referral costs Dr. Adams Dr. Baker Dr. Cage Dr. Dove 600 $504,000 800 $470,000 a. Calculate the withhold returned to each PCP at the end of the year. 1,000 $590,000 1,600 $880,000 + b. Calculate the total compensation of each PCP at the end of the year. c. Was each of the PCPs fairly compensated? + T + d. What incentives does this single risk pool based on aggregate PCP performance present to the individual PCPs?! e. What should be investigated to assess the fairness of the PCP compensation? Calculations a. and b. PCP capitation payment PPPM PCP risk pool withhold rate Specialty/hospital budget PPPM Number of months per year Number of referred patients Annual capitation payment Withhold Initial allocation Budgeted referral costs Actual referral costs Referral gain (loss) Withhold returned Total compensation $20 15% $50 12 Dr. Adams Dr. Baker Dr. Cage Dr. Dove 600 800 1,000 1,600 $504,000 $470,000 $590,000 $880,000 Total 4,000 $2,444,000! + T