Final answer:
Health maintenance organizations (HMOs) are a form of fixed prepayment that compensates physicians a fixed amount of money to provide necessary care.
Step-by-step explanation:
In health care, the fixed prepayment called health maintenance organizations (HMOs) is used to compensate physicians a fixed amount of money to provide necessary care. Under an HMO, physicians receive a set payment for each patient enrolled in the plan, regardless of how many services they provide.