What does HMO stand for in the context of healthcare?

In the context of healthcare, HMO stands for Health Maintenance Organization. This type of organization provides health insurance coverage by offering a network of doctors and hospitals to its members for a fixed, typically lower premium. The primary goal of an HMO is to promote preventive care and lower healthcare costs by managing the delivery of healthcare services within a defined network.

Members usually need to select a primary care physician (PCP) who acts as a gatekeeper for referrals to specialists, ensuring that care is coordinated and unnecessary treatments are minimized. This model helps in controlling costs and promoting overall health management among members, which is vital for maintaining effective and budget-friendly healthcare services.