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Medical ExpenseVerified · outline & fact-checked · Sep 2026Difficulty 2/5

In a staff model HMO, the physicians who provide care to members are typically:

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Answer & full 3-part explanation (select an option above, or peek)

Why B is correct

In a staff model HMO, the HMO owns its facilities and employs the physicians directly, paying them salaries. This differs from a group model, which contracts with one independent medical group, and from an IPA (independent practice association) model, which contracts with a network of independent physicians. The staff model gives the HMO strong control over utilization and costs because its doctors practice in HMO-owned clinics and follow HMO policies. All HMO models require members to select a primary care physician who coordinates and authorizes care.

Why the other options are wrong

  • A) Contracting with an association of independent practitioners describes the IPA model, not the staff model, in which physicians are salaried employees.
  • C) Freedom to select any provider in the state describes an open PPO-type arrangement, not an HMO, which limits members to a network under a primary care physician.
  • D) Direct billing by specialists on a fee-for-service basis describes traditional indemnity medicine, not an HMO staff model.

Memory hook

Staff = salaried staff of the HMO. The doctors work in the HMO's own building, on the HMO's payroll.

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