Final answer:
HMOs provide a fixed payment to healthcare providers based on patient enrollment, not on reimbursement for individual services, distinguishing them from fee-for-service systems.
Step-by-step explanation:
In Health Maintenance Organizations (HMOs), the reimbursement mechanism diverges from the fee-for-service model. In HMOs, healthcare providers receive compensation based on the number of patients under their care, with a fixed amount per enrolled individual, rather than being reimbursed for the actual cost of services rendered.
This distinctive reimbursement structure aims to encourage efficient resource allocation and mitigate moral hazard by discouraging unnecessary services. Unlike fee-for-service systems, where providers are compensated for each service performed, HMOs prioritize a holistic approach to patient care, emphasizing prevention and overall well-being. This model aligns with the broader goal of containing healthcare costs and fostering a preventive healthcare philosophy within the HMO framework.