If an HMO covered 150,000 lives, expected 25 mycardial infarctions to occur each year within the covered lives, would expect a length of stay of 4.5 days for each MI, and had to pay an average of $950 per day for each day and the MI patient was in the hospital, what would the PMPM cost to the HMO be?
What would have to be charged to the patient or employer if the HMO had administrative costs equaling 10% of its costs and it wanted a profit margin of 7%?
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This question was answered on: May 23, 2022
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