One of the most important things an HMO should do to stay profitable is to make sure
a) the medical costs' rate of growth is below the rate of growth of premiums (revenues), and
b) customer satisfaction does not slip.

Question

Quizplus · Accepted Answer

To stay profitable, an HMO must manage its finances by ensuring that the growth in medical costs does not outpace the growth in premiums, which are its main source of revenue. Additionally, maintaining or improving customer satisfaction is crucial for retaining members and attracting new ones, which directly impacts revenue and profitability.

One of the Most Important Things an HMO Should Do