Which of the following statements regarding health maintenance organizations (HMOs) is true?
a. HMOs typically work on a fee-for-services basis.
b. HMOs typically emphasize prevention because they hope to avoid costly treatments later.
c. Recent competition from preferred provider organizations (PPOs) caused most HMOs to stop requiring that their patients use only doctors and hospitals affiliated with the HMO.
d. HMOs operate on a non-profit basis, whereas PPOs and other health care organizations are profit-making, capitalistic endeavors.
Answer: b. HMOs typically emphasize prevention because they hope to avoid costly treatments later.
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