Organization of physicians sponsored by a state or local medical association concerned with the development and delivery of medical services and the cost of health care. Two types of FMCs exist: (1) comprehensive type of foundation, which designs and sponsors prepaid health programs or sets minimum benefits of coverage; and (2) claims-review type of foundation, which provides evaluation of the quality and efficiency of services by a panel of physicians to the numerous fiscal agents or carriers involved in its area including the ones processing Medicare and Medicaid. Also called foundation or medical foundation .