Certified Nurse Manager and Leader (CNML) Practice Test

What healthcare organization type typically offers more flexible provider options to patients?

1. Health Maintenance Organization

2. Exclusive Provider Organization

3. Preferred Provider Organization

4. Capitation-based organization

The correct answer is: Preferred Provider Organization

The Preferred Provider Organization (PPO) is known for offering more flexible provider options to patients compared to other healthcare organization types. Unlike Health Maintenance Organizations (HMOs), which often require members to choose a primary care physician and get referrals for specialists, PPOs allow patients the freedom to visit any healthcare provider without needing referrals. This flexibility enables patients to seek care from out-of-network providers, although typically at a higher cost. PPOs create a network of preferred providers who agree to lower rates for services, but patients are not limited to these options. They have the autonomy to make decisions about their healthcare, which can be appealing for individuals who desire greater control over their choices. This flexibility in provider selection is a key feature that distinguishes PPOs from other organization types, which generally have more restrictive networks or requirements.