You are negotiating a physician capitation contract with BigGreen Health Plan to begin on January 1 next year. Your actuarial projections say that for the 2,000 members to be covered under the contract, there will be three visits per member per year and you have been getting paid $75 per visit. You will base your capitation rate next year on the current payment plus 3% inflation. You will collect a $10 copayment for each visit, and that rate will be the same next year. 

Calculate What should the PMPM capitation be for this contract next year?

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