Should your hospital affiliate with an HMO?

Affiliation with a health maintenance organization (HMO) can offer significant advantages for a hospital, including new sources of patients and revenue. When considering HMO affiliation, the board and the administration should consider such issues as the compatibility of the affiliation with the hospital's mission and programs, the effect of the affiliation on the hospital's relationships with other parties, the implications of negotiating a contractual relationship with a payer, and the degree to which the hospital wishes to accommodate the HMO.