Increasingly, health maintenance organizations (HMOs) reimburse physicians, hospital, and other providers. They contract with companies to provide medical services to employees at fixed cost per person covered. In turn, the HMO contracts with hospitals and other providers, in some cases at a specified amount per DRG. The HMO therefore has the difficult task of controlling its payment so that they do not exceed the fees earned, but nevertheless seeing to it that adequate health care is provided.