Types Of Health Maintenance Organization Plans

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Two types of health maintenance organization plans that are readily available are the Staff Model HMO and Group Model HMO, and these plans are often called closed-panel plans (Kongstvedt, 2016, p. 63). These HMO plans are considered closed because either the HMO employs the physician, or the physician belongs to the HMO group, thus creating a smaller network for the patient to be seen (Farnham, n.d., Chapter 3). Each HMO plan has its benefits and disadvantages for the physician and patient. Consequently, depending on what the patient needs to meet their medical needs the Staff Model HMO plan or Group Model HMO plan would benefit them. Furthermore, depending on the particular type of freedom the physician is looking for is what would influence the type of plan they would join.
During a Staff Model HMO the physician is employed by HMO network, thus they are salaried employees. Therefore, the physician is paid whether he sees an HMO patient or not. On the other hand, the physician could be very busy and still get the same salary. Sometimes the HMO offers incentives for quality control, so that the physician does not use expensive medical testing (Kongstvedt, 2016, p. 65). Besides the HMO paying the salary of the physicians, the HMO actually owns the medical facilities, equipment, and supplies used by the HMO physician and in some cases the hospital. Hence, the physician employed by the HMO could be financially beneficial to them. Additionally, because of the size of the

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