PCP capitation rate at $15 per member per month (PMPM). Citizen Hines also contributes $45 PMPM to an institutional inpatient services risk pool and $30 PMPM to a specialist services risk pool. In addition, the contract includes a provision requiring a 20% withhold. Suppose the amount of Physician B's compensation withheld amount is 20% and their specialty services budget was $400,000 and incurred $412,000 in actual specialty expenses. If the distribution from the risk pool is based on individual behavior, what was her return from the risk pool at the end of the period

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter3: Accounting For Labor
Section: Chapter Questions
Problem 4E: Peggy Nolan earns 20 per hour for up to 300 units of production per day. If she produces more than...
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Citizen Hines HMO uses primary care provider (PCP) contracts that set the PCP capitation rate at $15 per member per month (PMPM). Citizen Hines also contributes $45 PMPM to an institutional inpatient services risk pool and $30 PMPM to a specialist services risk pool. In addition, the contract includes a provision requiring a 20% withhold. Suppose the amount of Physician B's compensation withheld amount is 20% and their specialty services budget was $400,000 and incurred $412,000 in actual specialty expenses. If the distribution from the risk pool is based on individual behavior, what was her return from the risk pool at the end of the period?

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