What are the critical differences in profit analysis when it is conducted in a capitated environment versus a fee-for-service environment

Critical differences in profit analysis

Part one:

Answer this

“What are the critical differences in profit analysis when it is conducted in a capitated environment versus a fee-for-service environment?”

Part two: 

Please see attachment- read problem 5.7 (see the two pictures attached)

Reference (for answers use):

Gapenski, L and K Reiter. (2016). Healthcare Finance. (6th ed.). Health Administration Press.

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