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The emergence and future of PPOs
Journal of Health Politics, Policy and Law
|January 1, 1986
Summary
The dramatic growth of preferred provider organizations (PPOs) in American healthcare is expected to continue. Future trends indicate increased vertical integration and joint ventures between healthcare providers and insurers.
Area of Science:
- Health Services Research
- Healthcare Management
- Health Economics
Background:
- The American healthcare system is undergoing significant restructuring.
- Preferred Provider Organizations (PPOs) have experienced dramatic growth as a key development.
Purpose of the Study:
- To assess the future direction of Preferred Provider Organizations (PPOs).
- To identify lead indicators of future activity within the PPO market.
Main Methods:
- A national telephone survey was conducted.
- Analysis included "new" versus "old" PPOs, the ten largest PPOs, and hospital chain entry into insurance.
Main Results:
- PPO enrollment showed dramatic growth in 1985.
- Market segments analyzed suggest continued enrollment growth.
Conclusions:
- The upward trend in PPO enrollment is projected to persist.
- Increased vertical integration and joint ventures between providers and insurers are anticipated.