Suppose Cigna, a PPO payer, is responsible for revenues of $8,000,000 per year. The Cigna contract is up for renegotiation in July of 2022, and St. Elizabeth desires a 3% increase to net revenue.Assuming all else remains constant and Cigna rate increases produce the 3% increase it penciled into the rate?

How much revenue will Cigna provide the system annually if it achieves its 3% increase goal?