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Staff Model Hmo vs. Group Model Hmo

In: Business and Management

Submitted By arassbach0916
Words 692
Pages 3
Ashley Rassbach

LP2: Staff Model vs. Group Model HMOs

HMOs provide several benefits to both physicians and patients alike; however, both Staff Model HMOs and Group Model HMOs offer different types of benefits for both. Group Model HMOs are centered around multi-specialty medical groups that focus on the performance of the group as a whole; they tend to be a bit less structured than the Staff Model HMOs. Many Group Model HMOs have ties to hospitals in the areas in which they practice, but are legally independent of those hospitals. New physicians to group practices must sign a Non-Compete Clause to prevent stealing of patients and often face an entry barrier due to the reverence given to senior members of the HMO.

Staff Model HMOs are health systems that employ physicians directly; either through direct recruitment or the purchase of a pre-existing practice. Staff models are comprehensive health systems that include hospitals and several other correlated healthcare organizations. Healthcare is provided in HMO-owned facilities by HMO-employed physicians. There is a high degree of control over the care that is delivered; often stressing quality and efficiency.
Physicians would be attracted to Group Model HMOs because of strength in numbers; the focus on the performance of the group as a whole creates unity among the members of the group. Individual physicians also have the ability to control their income based on their productivity. As a senior member of a group HMO, a physicians would be able to reap the benefits of putting in many years into a practice; they would be able to enjoy a higher income and more PTO than the other younger, less-senior physicians.

Physicians would be attracted to Staff Model HMOs for a variety of reasons as well. As opposed to the Group Model HMO, individual physicians are hired through direct recruitment and are paid a…...

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