Definition of Preferred Provider Organization

A preferred provider organization is an organization that has medical professionals and specialists that arrange reduced rates for the subscribed patients or insured persons. The care provider that provides a reduced rate of health care is called a preferred provider.

The preferred providers make contracts with these health professionals where an insured has subscribed as a client against a membership fee. These days use of preferred provider organizations is getting more popular because of reduced rates of expensive medical treatments and the fee is not very high.