An HMO with physicians and other providers who practice out of a central facility is called which type?

• A. PPO
• B. Staff model HMO
• C. IPA
• D. Group HMO

Answer: (D)

This item is about how an HMO organizes its provider network and where care is delivered. When an HMO contracts with a single large physician group and that group provides services from a centralized set of facilities, you’re looking at a group model HMO. In this setup, the group practice handles most of the care delivery across its offices and clinics, coordinating services through that central structure. This centralized, group-based delivery is what distinguishes a group HMO from other arrangements.

To contrast briefly: a staff model HMO would have physicians employed directly by the HMO and working in HMO-owned facilities; an independent practice association contract (IPA) involves independent physicians who remain in private practice and contract with the HMO through an intermediary rather than as a single paid group; and a PPO is not an HMO and typically offers more network flexibility with less centralized control.