PPO's have taken the initiative in designing ways to make medical care more efficient and more affordable, thereby preserving and/or increasing the market share of its participating providers. By using a PPO, a member or employee will typically experience reduced out-of-pocket costs or greater benefits, while retaining freedom of choice and easy access to providers. The Preferred Vision Care program is implemented through an optimal mix of independent practitioners as well as commercial providers. Preferred providers are practitioners who recognize that, in a competitive environment, an affiliation with a PPO such as Preferred Vision Care will result in directing a meaningful amount of new business to their practices. Although new PVC members will pay costs which are lower than those charged to non-members, the revenue from such new members can be an important source of additional revenue to the Preferred Provider for little or no increase in overhead. The Preferred Provider selection process includes: (1) identifying the geographic areas where member services are needed; (2) contacting potential providers in the area; (3) assessing potential providers based on established quality standards; and (4) contracting with one or more providers to service members in the area. It is the objective of Preferred Vision Care to have a geographical dispersion and density of Preferred Providers commensurate with the location and number of members. Through its Provider Resources Group, the Preferred Vision Care" program cooperates with sponsors on a state-by-state basis to assure appropriate Preferred Provider distribution.
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