PPI (Physician Preference Item)

Physician Preference Item (PPI) is a term used to describe a range of medical supplies including orthopedic implants and cardiovascular devices which physicians choose on behalf of their patient.  PPIs are estimated to be a significant  portion of a facility’s supply costs, and as such, are now the target of potential policy changes away from the current philosophy which allows physicians a free choice when it comes to devices and implants.  Devices and implants are often bundled into the facility cost of a procedure/surgery, and many payers will not pay separately for a device/implant, leaving the hospital or ASC (ambulatory surgery center) to “eat” the cost.