All I need is two paragraphs! Okay, this time you have to put your quot;administratorquot; hat on. Do some research before answering this one….

All I need is two paragraphs!!

Okay, this time you have to put your “administrator” hat on. Do some research before answering this one.

Consider the following scenario: you are the CEO of Peakside Primary Care in Hightown, Colorado, a city of about 25,000 persons. The major insurer in town has a majority of the market share in the community and has approached you about a capitation contract for 3,000 of their 15,000 enrolled lives. Your discussion question response entails three separate parts:

• Describe how you would set a capitation rate (price) per person, per month (PMPM) for this contract (explain yourself a lot);