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The third task of the consulting rm was to recommend an appro- priate allocation of the premium dollars to each category of provider. Specifically, the
The third task of the consulting rm was to recommend an appro- priate allocation of the premium dollars to each category of provider. Specifically, the contract calls for the Pl'lO to receive $200 per mem- ber per month, for a total annual revenue of $200 x 50,000 members x 12 months = $120 million. To reduce potential conflicts about how to divide the $120 million among providers, the consulting firm proposed a "status quo" allocation that would maintain the current revenue dis- tribution percentages shown in Exhibit 32.3
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