,S 500 the 7.4 Assume that Valley Forge Hospital has only the following three payer groups: Number of Admissions 1,000 4,000 8,000 Average Revenue per Admission $5,000 4,500 7,000 Variable Cost per Admission $3,000 4,000 80a Commercial PennCare Medicare cat 2,500 hat i covered ead 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 ayer 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? estion, way as 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? s into at d. Assuming that the utilization reduction also occurs, what overall net income would be produced if the variable cost per admission for the capitated group were lowered to $2,2002