Health Maintenance Organizations

Prepaid Group Practice.

Americans became more familiar with health maintenance organizations, or HMOs, during the 1970s. HMOs were first regarded as a radical fringe movement in American medicine, but the crisis in medical economics brought about a change in perception. An HMO is a prepaid group practice in which a person, or his or her employer, pays a monthly premium for comprehensive health care services. HMOs try to keep costs down by avoiding hospitalization and by emphasizing preventive services. Physicians work in HMOs on salary rather than for specific fees. Members receive doctors' services, laboratory tests, X rays, and perhaps prescription drugs and other health needs at little or no additional cost. Hospital coverage is also provided. There are some disadvantages to HMOs. Patients might be treated by whoever is on duty (especially nights or week-ends) rather than their doctor of choice, and patients have to use the...

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