Bay Pines Medical Center estimates that a capitated population of 50,000 would utilize 440 inpatient days per 1,000 enrollees at an average cost of $1,374 per day. Assume that , in addition to medical costs Dixie allocates 10% of the total premium for administrative and reserve costs.
What is the PMPM rate that Bay Pines must set to cover medical costs plus administrative and reserve expenses?