The results of a June 1988 member-satisfaction survey undertaken by a staff-model health maintenance organization (HMO) are presented, and implications for HMO management are discussed. Focus groups identified key reasons for consumer satisfaction; results were incorporated into a telephone survey that was administered to 600 households randomly selected from among enrollees and to an equal number of nonenrollees in the same region. Questions covered five areas: (1) importance-of-health-plan issues, (2) predictors of health-plan satisfaction, (3) importance-of-provider issues, (4) predictors of satisfaction with providers, and (5) demographics and use of services. Comprehensiveness of coverage was the most important factor in selection of a health plan; cost ranked second. Factors related to health-plan satisfaction included quality and quantity of plan physicians, access to specialists, and scope of benefits. Analysis of the dependent variable, perceived quality of physician care, revealed that physician technical skills, physician availability after hours, and equipment and facilities were among the highest-ranking factors. Enrollees were significantly more satisfied with their health plan overall than were members of preferred-provider organizations or indemnity health plans. Management concluded that member satisfaction was related to the number of physicians available and the ease of access to a preferred physician. Physician quality appeared to be the prime determinant of member satisfaction. Competition will spur health plans to place more interest on identifying and responding to member preferences.