Burleson Clinic has fixed costs of $2,000,000 and an average variable cost rate of $30 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $150 per each of its 20,000 members = $3,000,000 regardless of the number of visits. Past experience indicates the population served will average one visits per year (for a total of 20,000 members x 1 visits per member= 20,000 visits). a. Construct the group’s base case projected P&L statement.
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Burleson Clinic has fixed costs of $2,000,000 and an average variable cost rate of $30 per visit. It...
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