You are attempting to develop a break-even scenario for a capitation contract with an HMO. Your hospital has agreed to provide all inpatient services for 10,000 covered lives. You will receive $450 per member per month (PMPM) to cover all inpatient services. It is anticipated that 99 admissions per 1000 covered lives will be provided with an average length of stay of 5.0 days, or 495 days per 1000 enrollees.

You anticipate that your hospital will incur fixed costs, or readiness to serve costs, of

$ 36,000,000 for these 10,000 covered lives. Variable costs per patient day are expected to be$ 3600.

Calculate the break-even point, in patient days, under this contract.