HMO (Health Maintenance Organization)
An HMO provides health services to employees. It was established under the Health Maintenance Organization Act of 1973.
HMO's differ from traditional health services provider approaches by emphasizing preventive medicine. HMO's enroll members for a set fee to be paid in advance. They may be either profit-making or nonprofit.
Like insurance companies, they bear the risk of having a member pay the set fee and then having to provide services that cost more than the fee.
