Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 5

One physician who worked for a large health maintenance organization was quoted as saying:
One day I was listening to a patient's heart and realized there was an abnormal rhythm. My first thought was that I hoped that I did not have to refer the patient to a specialist.
Indeed, HMO physicians have been criticized for not making referrals when they are warranted. How do you think the physician was compensated by the HMO Explain.