PMPM is the per member per month I think you take the monthly capitated revenue requirements answer and divide it by 12. I am not sure

4 Assame that Valley Forge Hospital has only the following three payer groups: Commercial PennCare Medicare Number of Average Revenue Variable Cost Admissionsper Admission per Admission $5,000 4,500 7,000 1,000 4,000 8,000 $3,000 4,000 2,500 The hospital's fixed costs are $38 million. a. What is the hospital's net income? b. Assume that half of the 100,000 covered lives in the commercial payer group will be moved into a capitated plan. All utilization and cost data remain the same. What PMPM rate will the hospital have to charge to retain its Part a net income? c. What overall net income would be produced if the admission rate of the capitated group were reduced from the commercial level by 10 percent? d. Assuming that the utilization reduction also occurs, what overali net income would be produced if the variable cost per admission for the capitated group were lowered to $2,200