$7/15/2019$ UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT

Chapter $3-$Payments to Providers

In$-$Class Probiem

American Managed Care $($AMC$)$ is a managed care plan that is developing a premium bid for the primary care of the $1,000$ employees of XYZ Electronics. Last year, the XYZ employees made $3,000$ visits to primary cart physielans. Each primary care plysician can handle about $4,500$ patient visits per year, for which he or she is paid $$180,000.$ What primary care rate $($PMPM$)$ will AMC propose to XYZ$?$

ANSWER

Step $1$ Ideatify the relevant data

Number of ABC members

Visits per year for all ABC employers

Visat capacity per primaty care MD per year

Compensation per primary care ND

Manths per year

Step $2-$Calculate the required aumber of primany care MDs

Step $3-$ Calculate the annual cost of the primary care MiD

Sup $4.$ Calculate the proman eare enot per memher per vear

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