What does a Health Maintenance Organization (HMO) primarily do?

A Health Maintenance Organization (HMO) primarily oversees individual care through managed care structures, which is the correct understanding of its function. HMOs are designed to provide coordinated healthcare services to members, emphasizing preventive care and efficient management of medical services. By integrating various healthcare services, such as primary care, specialists, and hospital care, HMOs aim to maintain health and control overall costs.

This approach not only ensures that patients receive consistent healthcare but also facilitates communication among healthcare providers, which can lead to better outcomes. The focus on preventive care helps to catch health issues early, potentially reducing the need for more extensive and costly treatments later on.

In contrast, emergency services and alternative medicine options are not the primary focus of HMOs, and financial advisory services fall outside the typical scope of an HMO’s responsibilities. The structure of an HMO inherently requires coordination and oversight of healthcare services, making managed care the core of how they operate.