How are health maintenance organizations and preferred provider organizations alike?
Both HMOs and PPOs maintain a network of doctors, hospitals, medical labs, and independent physicians’ groups to provide and finance health care for members. Both attempt to reduce costs by applying specialized management techniques to limit what they regard as unnecessary or inappropriate medical procedures. Both also share the goal of reducing health-care costs by focusing on preventive care and general health promotion. But there are several major differences, including the following: Selecting a physician HMO: When you join an HMO, you choose a primary care physician (PCP), who is your first contact for all medical care needs. Your PCP becomes the physician who directs what care is given, how much care is given, and by whom the care is given. HMO members must choose a PCP from among the HMO network physicians. So if your longtime family doctor is not part of the HMO network, you’ll have to choose a new family doctor. PPO: PPO members do not have to choose a PCP and can refer themse
