A __________ is a selected group of hospitals and medical practitioners in a given area who have joined together to reduce medical costs.

A Preferred Provider Organization (PPO) is a selected group of hospitals and medical practitioners who collaborate to provide services at reduced costs. This structure allows members to receive care from a network of providers who have agreed to lower their fees for patients within the organization. The key aspect of a PPO is the flexibility it offers, allowing patients to seek services from both in-network and out-of-network providers, though they may incur higher out-of-pocket costs for out-of-network services.

The focus of a PPO is not solely on preventive care, unlike some other healthcare models, which means it can cater to a broader range of medical needs while potentially reducing overall healthcare expenses for its members. Members typically appreciate the ability to self-refer specialists without needing a primary care physician’s approval, contributing to the model's appeal.

In contrast, other choices do not fully encapsulate the characteristics of a network designed primarily to cut medical costs through collaboration among providers. Health Maintenance Organizations (HMOs) usually require members to choose a primary care physician and obtain referrals for specialists, focusing more heavily on preventive care. Indemnity networks offer more flexibility but do not concentrate on a selected group of providers for cost savings as PPOs do. Exclusive Provider Organizations (EPOs) limit coverage to