Direct Contract HMO (Open Access HMO): How It Works

A Direct Contract Model (DCM) HMO contracts directly with physicians and hospitals. Often called an "open access HMO," it allows members to see any network provider without a referral.

Payment Structure

Providers are paid on a capitated basis—a fixed amount per member per month, regardless of services used.

Pros and Cons

DCM HMOs are typically less expensive than other HMO types but may have fewer participating providers.