Question

Health care providers who are part of an HMO are paid a predetermined amount of compensation per month for each patient who participates in the plan. True or False

Answer 1

In HMOs, health care providers are paid a predetermined amount per month for each patient in the plan, regardless of the services provided.

Step-by-step explanation:

In health maintenance organizations (HMOs), medical care providers receive a predetermined amount of compensation per month for each patient who participates in the plan. This means that they are paid a fixed payment regardless of the number of services they provide to the patient. This method of payment is designed to encourage providers to limit the quantity of care provided and reduce the moral hazard problem, as they have a fixed budget to work with.