What type of organization is established primarily for the purpose of offering prepaid hospital care and other health services?

The correct answer is a health maintenance organization (HMO). A health maintenance organization is specifically designed to provide comprehensive health services through a network of providers in exchange for a fixed prepaid fee. This model emphasizes preventive care and the management of health services to improve patient outcomes while controlling costs.

HMOs typically require members to choose a primary care physician who will be their point of contact for all health needs, coordinating referrals to specialists and other services as necessary. This approach fosters a more managed and systematic method of healthcare delivery, which is focused on maintaining and improving health rather than solely treating illness after it occurs.

While other types of organizations, such as insurance companies or preferred provider organizations (PPOs), may also provide health services, they do not operate under the same prepaid model that characterizes HMOs. Insurance companies generally focus more on risk management and providing coverage in exchange for premiums, whereas PPOs offer more flexibility in provider choice but do not emphasize the same level of coordinated care or preventive services. Health service organizations may provide specific services but do not inherently involve the prepaid model that is fundamental to HMOs.