Preferred Provider Organization; a type of health insurance plan that provides coverage through a network of selected healthcare providers at reduced costs.
An acronym formed in the 1980s during healthcare reform efforts in the United States. The term combines 'preferred' (from Latin praeferre, to carry before) with 'provider' and 'organization,' reflecting the managed care movement's attempt to control costs through selective contracting.
PPOs emerged as a compromise between traditional fee-for-service medicine and more restrictive HMOs, offering patients more choice while still containing costs. The model has become so successful that it now covers more Americans than any other type of health insurance plan, fundamentally reshaping how healthcare is delivered and financed.
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