How do PPOs typically compensate participating providers?

PPOs, or Preferred Provider Organizations, typically use a fee-for-service model to compensate participating providers. This means that providers are paid a set fee for each service they deliver to patients, which incentivizes them to offer more services since their income increases with the number and complexity of the services provided. This model allows for flexibility and encourages a broad range of services to be available to patients.

In contrast, other compensation structures such as salary or capitation (where providers receive a fixed amount per patient regardless of services rendered) are not typical in a PPO setting. While PPOs may offer some performance incentives like rebates or bonuses, the standard method of reimbursement remains fee-for-service, making it the most accurate choice in this context.