A Physician-Hospital Organization (PHO) is a collaborative arrangement between hospitals and physicians aimed at improving healthcare delivery. This partnership allows for better coordination of patient care, enhancing the quality of services provided while controlling costs. PHOs often negotiate contracts with insurance companies to secure favorable terms for both providers and patients. In a PHO, physicians maintain their independent practices while benefiting from shared resources and administrative support from the hospital. This structure helps streamline operations, improve patient outcomes, and foster a more integrated approach to healthcare, ultimately leading to a more efficient system for managing patient needs.