Question
Your clinic has fixed costs of $1,000,000, an average variable cost of $15 per visit, one contract with a HMO where you are paid on
Your clinic has fixed costs of $1,000,000, an average variable cost of $15 per visit, one contract with a HMO where you are paid on a capitates basis. Your contract pays you $15 per member per month and you have 12,000 members. Each member comes into the clinic 2 times per year. How much money are you making (losing)?
Step by Step Solution
3.40 Rating (159 Votes )
There are 3 Steps involved in it
Step: 1
Total revenue 1512 mths12000 members 216...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Cornerstones Of Cost Management
Authors: Don R. Hansen, Maryanne M. Mowen
3rd Edition
9781305147102, 1285751787, 1305147103, 978-1285751788
Students also viewed these Corporate Finance questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App