What type of organization is an HMO?

An HMO, or Health Maintenance Organization, is categorized as a health insurance company that provides managed care. This model emphasizes preventive care and the management of healthcare services, where members typically must choose a primary care physician. The primary care physician serves as a gatekeeper, coordinating the patient's care and providing referrals to specialists when necessary.

HMOs focus on providing comprehensive healthcare services to their members at reduced costs, which is achieved through a network of providers, negotiated rates, and coordinated services. They often require members to receive care from in-network providers to receive the full benefits of their policies, ensuring that the care delivered is both efficient and cost-effective. This managed care structure distinguishes HMOs from traditional insurance plans, highlighting their role in both healthcare delivery and cost management.

By having a clear focus on preventive care and coordination of services, HMOs aim to reduce unnecessary medical expenditures while maintaining quality care for their members.