Health maintenance organizations (HMOs) serve the purpose of containing costs in the plans of managed mental health care, which is mainly done by restricting client benefits. An example of such restrictions is:

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HMOs often limit the number of visits for outpatient psychotherapy as a way to contain costs in their managed mental health care plans. This means that clients may not be able to have as many therapy sessions as they would like or as recommended by their therapist. This can have a negative impact on the quality of care received by clients. The other choices (decreasing the use of medication, decreasing deductibles and copayments, and increasing the number of days covered for inpatient care) are not typically used by HMOs as cost containment strategies.

Health Maintenance Organizations (HMOs) Serve the Purpose of Containing Costs