Preferred provider organizations--a review and update. Part I

This is the first of two articles on preferred provider organizations (PPOs). Part I focuses on how PPOs operate, their rapid growth in the private sector, and the Health Care Financing Administration's (HCFA's) involvement with PPOs for Medicare beneficiaries. Part II, which will appear in next month's issue of the Bulletin, will report on recent research concerning PPOs' cost-effectiveness, states' legislative activities affecting PPOs, and potential liability issues created by PPOs, as well as the College's views on these types of health care delivery systems.