Memo length of 2-3 pages
Revenue from Medicaid constitutes 30 percent of Krona’s annual revenue. The annual revenue for Krona last year was $20,000,000 and was expected to increase 10 percent the following year. The chief executive officer (CEO) has asked that you provide a brief summary of capitation to share with the board.
Compose a memo to the CEO that includes the following:
- Discuss the impact that the Medicaid cuts will have on Krona’s revenue.
- Address the possible issues surrounding next year’s forecasting.
- Provide an explanation of capitation.
- Discuss the challenges, benefits, and risks in utilizing capitation.