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Preferred provider organizations: performance, problems, and promise.

Prologue: With over 140 in existence and many under development, preferred provider organizations (PPOs) are attracting considerable interest among health policymakers as a growing option in the rapidly diversifying field of health care delivery. However, the surprising finding of Jon Gabel and Dan Ermann's research is that PPOs currently play a more important part in health policy debates than in actual delivery of health care. They see some provider-sponsored PPOs, in particular, as “little more than a marketing tool. “The authors applaud the PPO concept, but express concern over its execution. They feel that PPOs will not share a significant slice of the health care marketplace until greater emphasis is placed on cost control. PPOs currently serve less than one-half of one percent of the U.S. population, in this thorough overview and analysis of PPOs, the authors, who are senior economists at the National Center for Health Services Research and Health Care Technology Assessment, have relied on intervie...