How is a Health Maintenance Organization (HMO) primarily perceived in quality by employees?

Prepare for the DSST Human Resource Management Test. Utilize flashcards and multiple choice questions, each with hints and explanations to excel in your exam preparation!

A Health Maintenance Organization (HMO) is generally perceived by employees as providing lower quality healthcare services compared to other health plans. This perception often stems from the structured nature of HMOs, which typically require members to choose a primary care physician and obtain referrals to see specialists. Consequently, employees may feel that their access to specialized care is limited or that they have less freedom to choose healthcare providers. This can lead to the impression that the quality of care is not on par with other plans, such as Preferred Provider Organizations (PPOs), which frequently offer more flexibility in selecting providers and accessing services without the need for referrals. Additionally, employees may associate the cost containment strategies employed by HMOs, such as limited provider networks and strict utilization management, with a compromise in the quality of care received.

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