What is a direct contract model HMO?

Direct contract model (DCM) HMOs contract directly with physicians and hospitals to provide healthcare services to their members. This model is sometimes referred to as an "open access HMO" because members can see any physician or hospital in the network without a referral.

Physicians and hospitals in a DCM HMO are paid on a capitated basis. This means that they receive a fixed amount of money per member per month, regardless of how much care the member uses.

DCM HMOs are often less expensive than other types of HMOs. However, they may also have fewer participating physicians and hospitals.