Per Member Per Month (PMPM)

Per Member Per Month (PMPM) is a financial metric used in healthcare to measure the average cost of services for each member of an insurance plan or healthcare program, calculated monthly. It helps organizations track expenses, compare performance over time, and evaluate the efficiency of care delivery. For example, if a plan's total monthly costs are $500,000 and there are 1,000 members, the PMPM cost is $500. This standardizes expenses across different groups and time periods, enabling better financial planning and management.