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Preferred provider organization liability for physician malpractice.

The preferred provider organization (PPO) is a recent innovation in the health care industry, designed to reduce costs through selective contracting and utilization controls. This Note examines malpractice liability theories potentially applicable to PPOs. The Note compares PPOs to other health care institutions, including hospitals and HMOs, and concludes that PPOs are at minimal risk of incurring liability for physician negligence.

Insurance, Health↗

Capitation, disease management, and physician liability.

Capitation poses several risks for physicians. First, they assume the role of insurer. This liability may be mitigated by reinsurance but at a financial cost. They also incur greater malpractice liability as they strive to restrain expenses and maintain their income within the newly introduced precepts of disease management. Such increased liability may jeopardize their status as providers within managed care organizations.

Capitation Fee↗