I solved for part A$.$ Please solve for part B$.$

Assume that Valley Forge Hospital has only the following three payer groups: Commercial PennCare Medicare Number of Admissions 1,000 4,000 8,000 The hospital's fixed costs are $38 million (a) What is the hospital's net income? Average Revenue per Admission $5,000.00 $4,500.00 $7,000.00 2 pp,ooooo Average Revenue per Admission $5,000.00 $4,500.00 $7,000.00 $16,500.00 Variable Cost per Admission $3,000.00 $4,000.00 $2,500.00 Variable Cost per Admission $3,000.00 $4,000.00 $2,500.00 $9,500.00 Revenue by Payer Total Variable Costs Contribution Margin Commercial PennCare Medicare Total P&L Statement Total Revenues Variable costs Contribution Margin Fixed Costs Profit Number of Admissions 1,000 4,000 8,000 13,000 79000000 39000000 40000000 38000000 2000000 5000000 18000000 56000000 79000000 3000000 16000000 20000000 39000000 2000000 2000000 36000000 40000000 (b) Assume that half of the 100,000 covered lives in the commercial payer group will be moved into a capitated plan. All utilization and cost data remain the same. What PMPM rate with the hospital have to charge to retain its net inome calculated in part (a)? Commercial Capitated Plan PennCare Medicare Total P&L Statement Total Revenues Variable costs Contribution Margin Fixed Costs Profit PMPM Rate Number of Admissions 500 500 4,000 8,000 38000000 Average Revenue per Variable Cost per Revenue by Payer 18000000 56000000 Total Variable Costs Contribution Margin Admission $4,500.00 $7,000.00 Admission $4,000.00 $2,500.00 16000000 20000000 2000000 36000000