How are physicians paid who work for a prepaid group practice model?

Physicians working under the prepaid group practice model receive a fixed salary which usually includes fringe benefits. The prepaid group practice receives a flat fee per member enrolled and is therefore responsible for the salaries and benefits of its physicians and other staff. This payment method incentivizes physicians to provide cost-effective care as any savings achieved through reduced medical expenses contribute to the group's profits and are reflected in the physicians' salaries. The fixed nature of the payments also shields physicians from the financial risks associated with fluctuations in patient visits or treatment costs, providing a stable source of income.