Which term describes a contract established between healthcare providers and insurance companies to provide services?

The term that accurately describes a contract established between healthcare providers and insurance companies to provide services is known as a Preferred Provider Arrangement (PPA). This arrangement involves healthcare providers agreeing to offer services at reduced rates to patients who are part of a specific insurance plan. In return, the insurance company typically guarantees the providers a steady flow of patients, thus benefitting both parties.

PPAs facilitate a network of providers who have negotiated certain terms with the insurance company, often leading to cost savings for both patients and the insurer. By agreeing to these terms, healthcare providers can ensure a consistent patient base while also allowing patients to access care at lower co-pays or deductibles.

Other options representing different concepts in the healthcare system clarify why they do not fit this definition as precisely. Health Maintenance Organizations (HMOs) are comprehensive plans that provide a range of services on a prepaid basis but do not specifically refer to contracts with individual providers in the same way as a PPA. A restricted provider network generally refers to a group of providers that an insurance plan restricts its members to, but it doesn’t inherently describe a contract or arrangement. Similarly, a collective bargaining agreement typically relates to negotiations between employers and employees regarding labor conditions and is not specific to healthcare provider and insurance company