Preferred Provider Organization

The term Preferred Provider Organization (PPO) can be used to describe several different things: A plan of benefits that has a dual option: a higher preferred level when PPO providers are used, and a lower standard level when non-participating providers are used; or a provider organization that contracts with purchasers to be the preferred provider under their dual option plan; or an administrative organization that contracts with providers, and brokers these contracts with PPO purchasers.