AAPPO launches campaign to stop ‘silent PPOs’
September 1, 2000 less than 1 minute read
AAPPO launches campaign to stop silent PPOs’
The American Association of Preferred Provider Organizations (AAPPO) has approved a formal policy of fighting so-called silent PPOs — independent providers that act like PPOs but don’t belong to a organized preferred provider network or disclose their contract arrangements.
As part of campaign against silent PPOs, the association has adopted a policy that supports disclosure of all contractual intents and purposes relative to contractually permitted provider discounts.
Without such disclosure, "patient and network identification, access and steerage, and any financial differentials, [and] discounts should not be granted by providers, applied by PPOs nor taken by payers," says the AAPPO.
According to a report by Minneapolis-based researchers, InterStudy, PPOs are currently enjoying profit margins of 15% and higher. This compares to just 5% for the few HMOs that have returned to profitability.
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