Which is NOT a requirement to start a Health Maintenance Organization (HMO)?

To operate a Health Maintenance Organization (HMO), certain requirements must be fulfilled to ensure regulatory compliance and financial stability. One significant requirement is obtaining a certificate of authority, which allows the HMO to legally operate within the state. Additionally, meeting minimum capital and surplus requirements is crucial, as it protects the organization and its members against potential financial hardships, ensuring that it can cover health care costs.

The need to deposit in a rehabilitation and administrative expense fund is another technical requirement aimed at securing the HMO's financial obligations and supporting its operating costs.

While establishing a network of hospitals is essential for the functioning of an HMO, it is not a mandatory precondition for starting one. An HMO can begin its operations and build its network as it establishes itself in the marketplace. Therefore, while a network is necessary for service delivery and member access to care, it does not have to be fully established before the HMO is officially launched. This is why establishing a network of hospitals is not a requirement to start an HMO.