A conceptual framework for HMO managers who are evaluating physicians' financial incentives proposes that the incentives vary along five dimensions: (1) the percentage of the physician's income at stake, (2) the organizational level, (3) the synergy between multiple financial incentives, (4) the synergy between financial and nonfinancial incentives, and (5) signaling effects. Managers can apply this framework to assess the intensity of physicians' financial incentives and to devise better incentives.