In an Open Panel HMO, which statement describes the physicians?

• A. They are employed by the HMO and see plan members.
• B. They contract with the HMO to provide treatment through an IPA.
• C. They maintain private status and are not employees of the HMO; the HMO contracts with an IPA to provide treatment.
• D. They have no relationship with IPA arrangements.

Answer: (C)

Open Panel HMOs rely on independent physicians who maintain private practices rather than being employees of the HMO. In this setup, the HMO does not hire doctors directly; instead, it contracts with an independent practice association (IPA), which in turn contracts with physicians to deliver care for plan members. This arrangement lets physicians stay in private practice while still providing services to HMO members through the IPA, with the IPA handling contracts, credentialing, and payment.

That’s why this option best fits an Open Panel structure: it explicitly describes the physicians as non-employees of the HMO and identifies the IPA as the contracting intermediary that arranges treatment. In contrast, options suggesting employment by the HMO or no IPA relationship don’t match the open-panel model.