HMO
health maintenance organization: a health plan that offers a range of services through a specified network of health professionals and facilities to subscribing members for a fixed fee. Members select a primary care provider who coordinates all care and all services. Services may need further approval from the HMO utilization program. The HMO is reimbursed through fixed, periodic prepayments (capitated rates) by, or on behalf of, each member for a specified period of time. HMOs may subcapitate, or carve out, certain services, such as mental health, to other groups. See capitation.