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P . . .
Participating Physician
A primary care physician in practice in the payer's managed care
service area who has entered into a contract.
Participating Provider
A health care provider who participates through a contractual
arrangement with a health care service contractor, HMO, PPO, IPA or
other managed care organization.
Patient Liability
The dollar amount which an insured is legally obligated to pay
for services rendered by a provider.
PCP Capitation
A reimbursement system for healthcare providers of primary care
services who receive a pre-payment every month. The payment amount
is based on age, sex and plan of every member assigned to that
physician for that month. Specialty capitation plans also exist
but are little used.
Peer Review
A review by members of the profession "peers" regarding the quality
of care provided a patient, including documentation of care (medical
audit), diagnostic steps used, conclusions reached, therapy given,
appropriateness of utilization (utilization review), and reasonableness
of charges claims. The evaluation covers how well services are
performed by all health personnel and how appropriate the services
are to meet the patients' needs.
Performance Standards
Standards an individual provider is expected to meet, especially
with respect to quality of care. The standards may define volume
of care delivered per time period. Thus, performance standards
for obstetrician/gynecologist may specify some or all of the following
office hours and office visits per week or month, on-call days,
deliveries per year, gynecological operations per year, etc.
Per Member Per Month (PMPM)
Specifically applies to a revenue or cost for each enrolled member
each month.
Per Thousand Members Per Year (PTMPY)
A common way of reporting utilization. The most common example
of hospital utilization, expressed as days PTMPY.
Physician Attestation
The requirement that the attending physician certify, in writing,
the accuracy and completion of the clinical information used for
DRG assignment.
Physician Organization
This term describes physician linkages and alliances that allow
physicians to manage risk and capitation. Information systems,
physician relationships, and financial integration allow these
organizations to be more integrated than the traditional solo
practice or IPA relationship between healthcare providers and/or
managed care organizations that are working to develop a
"seamless" continuum of healthcare services.
Physician-Hospital Organization (PHO)
A contracted arrangement among physicians and hospital(s) wherein
a single entity, the PHO, agrees to provide services to insurers'
subscribers.
Plan Administration
A term often used to describe the management unit with responsibility
to run and control a managed care plan - includes accounting,
billing, personnel, marketing, legal, purchasing, possibly underwriting,
management information, facility maintenance, servicing of accounts.
This group normally contracts for medical services and hospital
care.
Point-of-Service Plan (POS)
Also known as an open-ended HMO, POS plans encourage, but do not
require, members to choose a primary care physician. As in traditional
HMOs, the primary care physician acts as a "gatekeeper"
when making referrals; plan members may, however, opt to visit
non-network providers at their discretion. Subscribers choosing
not to use the primary care physician must pay higher deductibles
and copays than those using network physicians.
Practical Nurses
Practical nurses, also known as vocational nurses, provide nursing
care and treatment of patients under the supervision of a licensed
physician or registered nurse. Licensure as a licensed practical
nurse (L.P.N.) or in California and Texas as a licensed vocational
nurse (L.V.N.), is required.
Practice Parameters
Strategies for patient management, developed to assist physicians
in clinical decision making. Practice parameters may also be
referred to as practice options, practice guidelines, practice
policies, or practice standards.
Preadmission Review
The practice of reviewing claims for inpatient admission prior
to the patient entering the hospital in order to assure that the
admission is medically necessary.
Preauthorization
A method of monitoring and controlling utilization by evaluating
the need for medical service prior to it being performed.
Pre-Certification
The process of notification and approval of elective inpatient
admission and identified outpatient services before the service
is rendered.
Predetermination
An administrative procedure whereby a health provider submits
a treatment plan to a third party before treatment is initiated.
The third party usually reviews the treatment plan, monitoring
one or more of the following: patient's eligibility, covered service,
amounts payable, application of appropriate deductibles, copayment
factors and maximums. Under some programs, for instance, predetermination
by the third party is required when covered charges are expected
to exceed a certain amount. Similar processes: pre-authorization,
pre-certification, pre-estimate of cost, pretreatment estimate,
prior authorization.
Pre-Existing Condition
One of the following:
- A physical condition of an insured person which existed prior
to the issuance of his policy or his enrollment in a Plan, and
which may result in the limitation in the contract on coverage
or benefits.
- A physical condition including an injury or disease that was
contracted or occurred prior to enrollment in the HMO. Federally-qualified
HMOs cannot limit coverage for pre-existing conditions.
Preferred Provider Organization (PPO)
One of the following:
- Some combination of hospitals and physicians that agrees to render
particular services to a group of people, perhaps under contract
with a private insurer. The services may be furnished at discounted
rates and the insured population may incur out-of-pocket expenses
for covered services received outside the PPO if the outside charge
exceeds the PPO payment rate.
- A health care arrangement between purchasers of care (e.g.,
employers, insurance companies) and providers that provides
benefits at a reasonable cost by providing members incentives
(such as lower deductibles and copays) to use providers within
the network. Members who prefer to use nonpreferred physicians
may do so, but only at a higher cost. Preferred providers must
agree to specified fee schedules in exchange for a preferred status
and are required to comply with certain utilization review guidelines.
Prepaid Group Practice
Prepaid Group Practice Plans involve multi-specialty associations
of physicians and other health professionals, who contract to
provide a wide range of preventive, diagnostic and treatment services
on a continuing basis for enrolled participants.
Prepayment
A method providing in advance for the cost of predetermined benefits
for a population group, through regular periodic payments in the
form of premiums, dues, or contributions, including those contributions
which are made to a Health and Welfare Fund by employers on behalf
of their employees.
Primary Care Provider (PCP)
A primary care provider such as a family practitioner, general
internist, pediatrician and sometimes an ob/gyn. Generally, a
PCP supervises, coordinates and provides medical care to members
of a plan. The PCP may initiate all referrals for specialty care.
Principal Diagnosis
The medical condition that is ultimately determined to have caused
a patient's admission to the hospital. The principal diagnosis
is used to assign every patient to a diagnosis related group.
This diagnosis may differ from the admitting and major diagnoses.
Profile
Aggregated data in formats that display patterns of health care
services over a defined period of time.
Profile Analysis
Review and analysis of profiles to identify and assess patterns
of health care services.
Prospective Payment System (PPS)
A payment method that establishes rates, prices or budgets before
services are rendered and costs are incurred. Providers retain
or absorb at least a portion of the difference between established
revenues and actual costs.
Primary Care
One of the following:
- Basic or general health care usually rendered by general practitioners,
family practitioners, internists, obstetricians and pediatricians
-- often referred to as primary care practitioners.
- Professional and related services administered by an internist,
family practitioner, obstetrician-gynecologist or pediatrician
in an ambulatory setting, with referral to secondary care specialists,
as necessary.
Primary Physician Capitation
The amount paid to each physician monthly for services based on
the age, sex and number of the Members selecting that physician.
Professional Standards Review Organization (PSRO)
A physician-sponsored organization charged with reviewing the
services provided patients who are covered by Medicare, Medicaid
and maternal and child health programs. The purpose of the review
is to determine if the services rendered are medically necessary;
provided in accordance with professional criteria, norms and standards;
and provided in the appropriate setting.
Purchaser
This entity not only pays the premium, but also controls the premium
dollar before paying it to the provider. Included in the category
of purchasers or payers are patients, businesses and managed care
organizations. While patients and businesses function as ultimate
purchasers, managed care organizations and insurance companies
serve a processing or payer function.
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