Which statement describes an Open Panel HMO?

• A. This type contracts with an Independent Practice Association (IPA) and physicians maintain private status and are not employees of the HMO.
• B. Physicians are employees of the HMO and see only plan members.
• C. The HMO directly employs all clinicians and controls care.
• D. All care must be delivered within hospital facilities.

Answer: (A)

Open Panel HMO is defined by contracting with physicians who are in private practice and not employees of the HMO, usually through an Independent Practice Association. This setup lets doctors outside the HMO’s direct payroll participate in the network, maintaining their own practice status while providing services to plan members under the HMO’s contracts. The other descriptions reflect different HMO models: one where physicians are employees of the HMO and see only plan members (a closed or staff-model arrangement), a model where the HMO directly employs all clinicians and tightly controls care (staff-model), or a requirement that care occur only within hospital facilities (not a defining feature of open-panel arrangements).