Assume that Valley Forge Hospital has only the following three payer groups:

Payer     Number of Average Revenue     Variable Cost     Revenues per Admission

PennCare     1,000                                      $5,000                   $3,000

Medicare        4,000                                     4,500                        4,000

Commercial    8,000                                   7,000                         2,500

What overall net income would be produced if the admission rate of the capitated group were reduced from the commercial level by 10 percent?