· 13 Feb 2023

Per member per month.

Refers to the ratio of some service or cost divided into the number of members in a particular group on a monthly basis. For example, if a 10,000 member HMO in one month’s time spends $20,000 on cardiovascular surgery, the cost on a PMPM basis would be $20,000 divided by 10,000 equaling $2 per member per month.