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Research Article
Issue Date: May 01, 1984
Published Online: July 24, 2014
Updated: June 13, 2018
Preferred Provider Organizations
Author Affiliations
  • Jane D. Davy, OTR, is Assistant Director, Government and Legal Affairs Division, AOTA, Rockville, MD 20850, and Guest Editor of this issue of AJOT
Article Information
Professional Issues / Features
Research Article   |   May 01, 1984
Preferred Provider Organizations
American Journal of Occupational Therapy, May 1984, Vol. 38, 327-329. https://doi.org/10.5014/ajot.38.5.327
American Journal of Occupational Therapy, May 1984, Vol. 38, 327-329. https://doi.org/10.5014/ajot.38.5.327
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Abstract

The 1980s has marked the beginning of a new alternative health care delivery system: the preferred provider organization (PPO). This system has developed from the health maintenance organization model and is predominant in California and Colorado. A PPO is a group of providers, usually hospitals and doctors, who agree to provide health care to subscribers for a negotiated fee that is usually discounted. Preferred provider organizations are subject to peer review and strict use controls in exchange for a consistent volume of patients and speedy turnaround on claims payments. This article describes the factors leading to the development of PPOs and the implications for occupational therapy.