A hospital has a per diem payment arrangement with an HMO. The plan will pay the hospital $1,200 a day for inpatient car

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A hospital has a per diem payment arrangement with an HMO. The
plan will pay the hospital $1,200 a day for inpatient care,
regardless of the services the hospital provides. This month, one
member has been hospitalized for three days for observation and
tests. The hospital charges for each of the three days are $1,275,
$1,330, and $1,200.

A. What is the total hospital fee for the three days?

$
B. How much will the HMO pay the hospital for this patient’s
care?

$
C. How is the balance handled?