preferred provider organization (redirected from Prudent buyer)

pre·ferred provider organization (prfûrd)

n.

Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan.

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preferred provider organization (PPO)

[-furd′]

Etymology: L, praeferre, to put before

an organization of physicians, hospitals, and pharmacists whose members discount their health care services to subscriber patients. A PPO may be organized by a group of physicians, an outside entrepreneur, an insurance company, or a company with a self-insurance plan. See also health maintenance organization.

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preferred provider organization (PPO),

n a formal agreement between a purchaser of a dental benefits program and a defined group of dental professionals for the delivery of dental services to a specific patient population as an adjunct to a traditional plan, using discounted fees for cost savings.

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preferred provider organization

Managed care A network of independent health care providers who provide medical services to a health plan's members or purchasers–eg, insurance companies, employers and other health care buyers at a discount; PPO members typically have autonomy over health care rather than needing to pass by a primary care (gatekeeper) physician like HMO members; use of in-network physicians is less expensive than using non-network providers. Cf Fee-for-service, HMO.