A local insurer has proposed to pay Sunrise Wellness Group a…
A local insurer has proposed to pay Sunrise Wellness Group a per member per month (PMPM) payment of $17.25 for each enrolled patient. Sunrise has annual fixed costs of $2,150,000. The practice estimates that each enrolled patient will average 3 visits per year, with a per-visit cost of $42.10. Approximately, how many patients must be included in their patient panel for Sunrise Wellness Group to earn an annual profit of $275,000?