What would be a responsible way oif dealing with a homeless person who is ill, but not ill enough to be in the hospital?
The HMO has every right to stop paying once the patient no longer needs hospitalization.
Wrong!
HMOs supposedly pay for much more than hospitalization. Depending on their contract, they are responsible for physician fees, medicines, imaging, labs, medical devices, etc.
In fact, one of the biggest selling points of HMOs to employers is their promise to pay for more of the routine health care costs and thus encourage employees to seek care sooner rather than later while their condition is either preventable, or can be treated at a lower cost with less time off work.
The HMO only has the right to stop paying once the patient no longer needs medical care.