Which of the following best describes what physicians did to compete w

Which of the following best describes what physicians did to compete with new competition from health maintenance organizations (HMOs)?

a. Accepted employment directly under the insurance company
b. Organized preferred provider organizations (PPOs) to negotiate with insurance companies
c. Created private practices with colleagues within hospital medical complexes
d. Decided to strike and refused to work in the new HMOs

ESSAYBID ANSWER

ANS: B
In an effort to compete with HMOs, physicians and hospitals organized the independent practice model, which provided services to enrollees of one insurance company. This model evolved into the PPO, which offered services at a reduced rate in exchange for a guaranteed increase in consumers. Physicians did not become directly employed by insurance companies, set up private practices with colleagues, or decide to strike in order to compete with the HMOs.