A vehicle enabling hopsitals and physicians to work cooperatively toward accomplishing objectives

• Primary purposes for forming a PHO are developing improved methods of health care delivery; overseeing integration of physicians and hospitals into health delivery networks; assisting voluntary group formation; collecting, analyzing, and disseminating information.
  
  
• Secondary purposes include contracting with managed care organizations with joined risk sharing, developing standards of care and building trust between hospitals and physicians.

Source: Kongstvedt, P, R. The Managed Health Care Handbook., Third Edition 1996

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