Final answer:
The scenario described is a Staff model HMO, where physicians are salaried employees who provide healthcare services directly to HMO members and focus on preventive and efficiently managed care.
Step-by-step explanation:
The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a Staff model HMO. In this model, the healthcare providers are employed directly by the HMO and are salaried. This is distinct from other arrangements like Group practice, Independent practice association (IPA), and Managed care organization (MCO). Providers in a Staff model HMO receive a fixed salary and provide services to the HMO's members. This model is believed to reduce moral hazard as it sets incentives for providers to focus on preventive care and manage the care they provide efficiently, unlike the fee-for-service model where providers are reimbursed for each service they provide.