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How specialty contracts achieve savings.

N Rothenberg1

  • 1Physical Therapy Provider Network, Inc., Woodland Hills, CA.

Journal of Health Care Benefits
|December 9, 1993
PubMed
Summary
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AAPPO journal : the journal of the American Association of Preferred Provider Organizations·1993
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Preferred provider organizations are becoming a popular choice for healthcare payers seeking to control costs in specialty care. This strategy allows payers to manage expenses more effectively.

Area of Science:

  • Health economics
  • Healthcare management
  • Managed care

Background:

  • Healthcare payers are increasingly focused on cost containment strategies.
  • Specialty care represents a significant area for potential cost savings.
  • Traditional contracting models may not fully address rising specialty care expenditures.

Purpose of the Study:

  • To examine the growing appeal of preferred provider organization (PPO) contracting for specialty care.
  • To understand the role of PPO contracting in healthcare cost containment efforts.
  • To analyze the strategic considerations for healthcare payers adopting PPO models for specialty services.

Main Methods:

  • Review of current healthcare payer strategies.
  • Analysis of trends in preferred provider organization contracting.

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  • Assessment of cost containment mechanisms within managed care.

    • Main Results:

    • Preferred provider organization contracting is gaining traction among healthcare payers.
    • PPO models are being re-evaluated for their potential in managing specialty care costs.
    • Payers are actively exploring expanded roles in cost containment through network contracting.

    Conclusions:

    • Preferred provider organization contracting offers a viable avenue for healthcare payers to enhance cost containment in specialty care.
    • The strategic adoption of PPO networks is a key consideration for payers aiming to manage expenditures.
    • Further investigation into the efficacy and implementation of PPO contracting for specialty services is warranted.