Question: You have been asked to develop a capitation rate for a primary care group based on the following projections: Service Annual Frequency/1,000 Cost per Service

You have been asked to develop a capitation rate for a primary care group based on the following projections: Service Annual Frequency/1,000 Cost per Service Inpatient Visits 1 00 $7,000.00 a.) Office Visits 3,000 $45.00 b.) Lab/X-ray 500 $25.00 What per-member per-month (PMPM) rate would be required to break even, ignoring any copayments?

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