presco27:

The users of HMO are companies with at least five employees. The Health Management Organization offers its services to companies seeking to provide healthcare services for its employees as well as their families. The arrangement works in the following way

The HMO company has a list of Healthcare service provider that can serve its clients (companies).
The HMO offers its services to companies seeking to provide healthcare for its employees. The services are offered under different product plans.
An agreement is made depending on the type(s) of HMO plan the company’s employees opt for including the premium attached to it.
The company agrees to pay the premium, which will cover the employees of the company based on their choice of products. Their choice of products is subject to the conditions of that plan for a stipulated time which is usually a year.
The employee selects a hospital from the list of healthcare service providers of HMOs like Hygeia HMO, Avon HMO, and so on.
When an employee or any person eligible under the HMO scheme falls ill, the hospital is liable to attend to the patient if that was the choice of the healthcare provider as well as other considerations.
The hospitals are often paid upfront regardless of whether the patient uses it or not.

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