Grandview Clinic has fixed costs of $1.98 million and an average variable cost rate of $14...
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Grandview Clinic has fixed costs of $1.98 million and an average variable cost rate of $14 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $159 for each of its 18,293 members. Past experience indicates the population served will average two visits per year. What is the clinic's expected contribution margin on the contract? (Round your answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.) Grandview Clinic has fixed costs of $1.98 million and an average variable cost rate of $14 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $159 for each of its 18,293 members. Past experience indicates the population served will average two visits per year. What is the clinic's expected contribution margin on the contract? (Round your answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)
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