Bаsed оn the definitiоn оf PPO (preferred provider orgаnizаtion), which of the following choices is CORRECT about this health plan? Definition of PPO: A type of health plan that contracts with medical providers, such as hospitals and doctors, to create a network of participating providers. You pay less if you use providers that belong to the plan’s network. You can also use doctors, hospitals, and providers outside of the network for an additional cost.