NCLEX QUESTION for Provider Organization

NCLEX Review Question

A preferred provider organization is described as a

a.business arrangement between hospitals and physicians.
b.prepaid group health practice system.
c.limited insurance program.
d.health care savings account program.

Correct Answer: A
Business arrangement between hospitals and physicians.

Rationale: PPO’s usually contract to provide health care to subscribers, usually businesses, for a negotiated fee that often is discounted.

prepaid group health practice system.

Rationale: A prepaid group health practice system is termed a health maintenance organization.

limited insurance program.

Rationale: Insurance is a cost payment system of shared risk, not a health care delivery system.

health care savings account program.

Rationale: A health care savings account program is an incentive program to consumers, not a health care delivery system.

Posted in: MSN NCLEX