You are attempting to develop a break even for a capitation contract with a major HMO.

Your hospital has agreed to provide all inpatient hospital services for 10,000 covered lives.

You will receive $38 per member per month to cover all inpatient services.

It is anticipated that 93 admissions per 1,000 covered lives will be provided with an average length of stay equal to 5.0, or 465 days per 1,000.

You anticipate that your hospital will incur fixed costs, or readiness to serve costs, of $1,860,000 for these 10,000 covered lives.

Variable costs per patient day are expected for be $600.

Calculate the break-even point in patient days under this contract

I know i need fixed cost, price, and variable cost for the break even formula, but for some reason my calculations dont make sense. I feel like maybe the patient days units or the fact that the variable costs per patient day is throwing me off, but something isnt working for me.