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Contracting with specialty PPOs: new cost containment options
1Physical Therapy Provider Network, Woodland Hills, CA.
Employee Benefits Journal
|September 1, 1993
Summary
Specialty Preferred Provider Organizations (PPOs) are increasingly popular for healthcare cost savings and quality. Physical therapy is a prime example of a service that can benefit from a specialty PPO model.
Area of Science:
- Health economics
- Healthcare management
- Managed care organizations
Background:
- Specialty Preferred Provider Organizations (PPOs) are emerging as a cost-effective strategy in healthcare.
- Payers are recognizing the potential for quality assurance and cost reduction with specialty PPOs.
- Traditional PPOs (hospital and physician) have demonstrated success, paving the way for specialized models.
Purpose of the Study:
- To highlight the growing trend and benefits of specialty PPOs.
- To identify physical therapy as a suitable service for a specialty PPO model.
Main Methods:
- Analysis of current trends in healthcare payer strategies.
- Evaluation of the characteristics of physical therapy services in relation to PPO benefits.
Main Results:
- Specialty PPOs offer comparable cost savings and quality assurance opportunities to traditional PPOs.
- Physical therapy services possess attributes that align well with the structure and goals of specialty PPOs.
Conclusions:
- Specialty PPOs represent a valuable evolution in managed care.
- Integrating physical therapy into specialty PPO frameworks can enhance efficiency and patient outcomes.