What is a distinguishing feature of a PPO regarding payment model?

In a Preferred Provider Organization (PPO), the distinguishing feature regarding the payment model is that physicians receive a fee for service. This means that healthcare providers are compensated based on the specific services they deliver to patients. Each service, such as an office visit, a procedure, or a test, has a set fee associated with it, which encourages providers to offer a range of necessary medical services to patients.

This model contrasts with other arrangements where physicians might be paid a fixed salary or commissions, which are not typical of PPO structures. In a PPO, while there is a network of preferred providers that members are encouraged to use, the fee-for-service approach allows more flexibility in terms of how services can be delivered and for providers to be compensated for each service rendered, reflecting the direct nature of patient care provided.