One of the options under managed care is Health Maintenance Organization (HMO). This system provides a variety of health insurance packages in collaboration with specific hospitals, physicians, and other healthcare providers.
This health network signs a contract with the given HMO to provide specific health care services to its clients at a fixed and prepaid fee. Kongstvedt points out that the contract demands that the network of health care providers, physicians, and hospitals offer health care services to HMO plan members according to the HMO guidelines and restrictions and they will in turn enjoy the continuous flow of customers (p.40). The HMO care has also made it possible for the health institutions to provide their customers and patients with much better services. There is ease of access to the services by these patients and they are thus able to get the services they need more efficiently.
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