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Page 2 7. Describe how profits are affected by a capitated environment, including the impact of utilization management and membership rates. total underlying cost structure

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Page 2 7. Describe how profits are affected by a capitated environment, including the impact of utilization management and membership rates. total underlying cost structure for a volume patients Total costs = Fuxed costs + variable 1000,000,000 + 40 200 = 10ou, ou on t 8,00 = $100,00 8,000 1000,000,000 + 1513 = 1 600,000,000 + 150 - $100,015, 000

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