PPO of Millbridge Township (PPOMT) sells health benefit plans to…

Question Answered step-by-step PPO of Millbridge Township (PPOMT) sells health benefit plans to… PPO of Millbridge Township (PPOMT) sells health benefit plans to local employers. The organization charges its clients (local employers) $50 for each office visit provided to a covered employee. PPOMT contracts with individual physicians to provide the office visits individual physicians to provide the office visits to its health plan beneficiaries. The organization pays its contracted physicians a fee of $40 of each new patient visit and $30 for each follow-up office visit. Twenty percent of all office visits are new patient visits. PPOMT maintains an office building where all routine office visits are conducted. The organization pays $6,000 in occupancy expenses each month for the building. PPOMT also incurs monthly staffing costs of $12,000 for maintenance and administrative staff at it facility. (1) How many office visits must PPOMT deliver to break even? How does one calculate the CM for the clients (local employers)?   Accounting Business Financial Accounting PUBLIC ADM 574 Share QuestionEmailCopy link Comments (0)