Primary care rate (PMPM) will Families First propose to ABC

jagguarpaw January 16, 2017 0 Comments

Question: What primary care rate (PMPM) will Families First propose to ABC…

Need help with this problem. The answer is bolded. Is it correct?

PROBLEM 1

Families First is a managed care plan that has been asked to submit a premium bid to ABC Company, a large
Manufacturer in its service area. The premium bid includes the primary care for all of the ABC employees.
ABC has provided information about the age and gender of its employees, and Families First has identified
Average primary care utilization rates from its own databases. This information is shown below:
ABC Company Average primary care
Number of Number of visits per year Ann Rate Ann Rate Prov FTE Prov FTE
Age band males females Males Females Males Females Yr-Male Yr-Fem
20-29 285 325 2.10 3.18 598.5 1033.5
30-39 96 100 2.60 3.52 249.6 352
40-49 53 57 3.28 3.93 173.84 224.01
50-59 36 36 4.14 4.43 149.04 159.48
60+ 7 5 4.98 5.04 34.86 25.2
1205.84 1794.19 0.40 0.60
Each primary care physician can handle about 3,000 patient visits per year, for which he or she is paid
$180,000. What primary care rate (PMPM) will Families First propose to ABC Company?
ANSWER Annual            PMPM
Male 72350.40         $ 6,029.20
Female 107651.40         $ 8,970.95
180001.80         $15,000.15