Hmo Responsible For Health Care

Decent Essays
The main characteristics of the Health Management Organization (HMO) are responsible for health insurance and health care. The HMO sells the health insurance coverage to customers on a per capita basis. The HMO assumes all responsibilities including financial risk for providing the care. The HMO is reliant on the providers to assess the HMO member’s condition and to provide appropriate levels of care.
Healthcare providers will be forced to become more pre-conscious and cost-effective if HMOs gain market shares. HMOs reduce costs through fixed budget financing, reduced inpatient utilization by keeping customers out of hospitals, and using fewer resources once a customer is admitted. If HMOs control significant amounts of patient volume, the

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