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 care physicians. Each primary care physician 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 - Identify the relevant data Number of ABC members 0 Visits per year for all ABC employees 0 Visit capacity per primary care MD per year 0 Compensation per primary care MD $0 Months per year 0 Step 2 - Calculate the required number of primary care MDs 0.00 Step 3 - Calculate the annual cost of the primary care MD $0 Step 4 - Calculate the primary care cost per member per year $0 Step 5 - Calculate the primary care cost per member per month $0.00