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Yes it can. Look on page 397 of your text Insurance Handbook for the Medical Office, 11th edition, by Marilyn T. Fordney.

Look at the paragraph entitled Health Maintenance Organization Act of 1973....

"An HMO is a prepaid group practice that can be sponsored and operated by the government, medical schools, clinics, foundations, hospitals, employers, labor unions, community or consumer groups, insurance companies, hospital medical plans, or the Veterans Administration."

(This was a tricky question, I know, I was hunting for the answer on page 400 !)

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Q: Can an HMO be sponsored and operated by a foundation?
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