What is a preferred provider organization (PPO) network and how does it influence payer strategy?

What is a preferred provider organization (PPO) network and how does it influence payer strategy?

• A. A PPO network restricts to in-network providers only.
• B. A PPO network involves a single specialty network with fixed prices.
• C. A PPO network comprises participating providers with discounts; out-of-network allowed at higher costs; reduces payer risk while preserving member choice.
• D. PPO network eliminates referrals for specialists.

Answer: (C)