What does HMO stand for in healthcare?

HMO stands for Health Maintenance Organization, which represents a type of health insurance plan that provides a range of healthcare services through a network of providers. Members typically select a primary care physician who coordinates their care and refers them to specialists when necessary. This model emphasizes preventative care and wellness services, helping to manage healthcare costs while aiming to keep members healthier.

Health Maintenance Organizations operate on the principle of offering comprehensive care to members for a fixed monthly fee, often incentivizing the use of in-network services and discouraging out-of-network consultations unless specifically authorized. This structure aims to enhance efficiency in healthcare delivery and encourage the use of preventive services to mitigate the need for more costly treatments later.