Silent Preferred Provider Organizations (PPOs), Secondary Markets, and White Space Management: Three Terms That Translate to Revenue Erosion and Frustration

A “silent PPO” refers to a situation where, unbeknownst to its contracting health care providers, a managed care organization (MCO) “sells” or “rents” its preferred provider organization network of providers to a third party (typically a third-party administrator, insurance broker, or smaller PPO). The third party gets the advantage of whatever discount the MCO has negotiated with the health care provider. The health care provider becomes aware of this only after he or she provides services to a patient who is not covered by the PPO.