Per Member Per Month (PMPM) refers to the monthly healthcare cost of the average member of a health plan. PMPM is a basic indicator for healthcare spending and forms the basis upon which payers pay providers.

As the industry turns its head toward value-based care and away from fee-for-service, PMPM becomes an even more relevant number in determining an appropriate per member price, as many of the new models are based on member numbers rather than visits.

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