Define: Health Maintenance Organization

UK Accounting Glossary

Definition: Health Maintenance Organization



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Full Definition of Health Maintenance Organization


A health maintenance organization, or HMO, is a public or private organization that provides comprehensive medical care, based on a prepaid contract agreement. A health maintenance organization can be considered a form of health insurance, designed to deliver a broad range of services for a fixed payment. Once the health maintenance organization contract is signed and payments are secured, a health maintenance organization takes on a legal responsibility for all pre-approved costs associated with pre-approved medical conditions. A health maintenance organization comprises a network of medical care providers, such as doctors, hospitals, laboratories, and other medical treatment entities. In addition, a health maintenance organization designates a Primary Care Physician (PCP), who in turn handles other health-related services. Although a health maintenance organization system was developed as a flexible and affordable healthcare financing option, any given health maintenance organization may limit care, even against the advice of network affiliated doctors.


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Synonyms For Health Maintenance Organization


HMO


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Health Maintenance Organization. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 19, 2020 https://payrollheaven.com/define/health-maintenance-organization/.
Chicago Manual of Style (CMS):
Health Maintenance Organization. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/health-maintenance-organization/ (accessed: February 19, 2020).
American Psychological Association (APA):
Health Maintenance Organization. PayrollHeaven.com. Retrieved February 19, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/health-maintenance-organization/

Definition Sources


Definitions for Health Maintenance Organization are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.