Preferred provider organizations: an analysis

The field of health care is moving very quickly, developing new technologies and diagnostics as well as devising new ways to pay for this technology. This article deals with one particular, rapidly evolving payment mechanism, namely, the Preferred Provider Organization (PPO). The analysis below describes the growth of the PPO, both in the medical field and in the current general marketplace, and examines its future. Creative approaches to designing PPOs are also discussed. Finally, this article offers some suggestions on ensuring the viability of PPOs.