$\backslash$table$[[$Payer$,\backslash$table$[[$Number of$],[$Admissions$]],\backslash$table$[[$Average$],[$Revenue per$],[$Admission$]],$Revenue by Payer,Variable Cost per Admission,Total Variable Costs,Contribution Margin,PMPM$,,,,],[$Commercial FFS$,5,000,$$ $7,000,,$$ $5,500,,,,,,,],[$Capitated$,,,,$$ $5,500,,,,,,,],[$PennCare$,4,500,$$ $6,000,,$$ $-5,200,,,,,,,],[$Medicare$,6,500,$$ $6,500,,$$ $4,900,,,,,,,],[,16,000,19,500,,21,100,,,,,,,],[,,,,,,,,,,,],[$Fixed Costs,$ $22,000,000,,,,,,,,,,],[,,,,,,,,,,,],[,,,,,,,,,,,],[1.$ What is the he$,$net income?,,,,,,,,,,$]]$

Assume $100,000$ covered lives. Assume that $75,000$ of these individuals will be moved into a capitated plan. What PMPM rate will the hospital have to charge to retain its net income?

What overall net income would be produced if the admission rate in the capitated group would be reduced by $20\%?$

Assuming the utilization reduction from #$3$ above remains, what income would be produced if the variable cost per admission were lowered to $$3,000?$

Total Revenue

Total Variable Costs

Contribution Margin

Fixed Costs

Net Income

PMPM Rate