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Simple English definitions for legal terms
preferred-provider organization
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A quick definition of preferred-provider organization:
A preferred-provider organization, or PPO, is a group of doctors, hospitals, and pharmacies that have agreed to offer medical services at a lower cost to people who are covered by their insurance plan. This means that if you go to a doctor or hospital that is part of the PPO, you will pay less for your medical care. It's like getting a discount on your healthcare! PPOs are different from health-maintenance organizations, or HMOs, which also offer discounted medical services but have more restrictions on which doctors and hospitals you can see.
A more thorough explanation:
A preferred-provider organization (PPO) is a group of healthcare providers, including doctors, hospitals, and pharmacies, that agree to provide medical services at a discounted cost to covered persons in a specific geographic area.
For example, if you have a PPO health insurance plan, you can choose to see any doctor or healthcare provider within the PPO network. The PPO network has negotiated discounted rates with these providers, so you will pay less for medical services than if you went to an out-of-network provider.
Another example is if you need to have surgery. If you choose a surgeon within the PPO network, you will pay less for the surgery than if you went to a surgeon outside of the network.
In summary, a PPO is a group of healthcare providers that offer discounted medical services to covered persons within a specific geographic area.