The transformation of medical marketplace has major implications between two surging managed care plans. Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO) examine research gaps, tradeoffs between financial and administrative barriers, and participation has fueled undesirable outcomes for both plans. Furthermore, employers, consumers, and providers seem to know what it is they do not want from their managed care plans, the options they have within these plans are not always clear. Evidence suggests that a comparison of two managed care plans can be utilized when examining health care benefits. “It is also related to the fact that PPO participation growth resulted from flight from the undesirable features of the HMO and widespread skepticism about the value of managed care, rather than from a migration to the attractive features of the PPO.” (Hurley, Strunk, and White, 2004) It focuses on the design of these two managed care plans Health Maintenance Organizations (HMO), and Preferred Provider Organizations (PPO). This article with describe the similarities and differences between these two managed care plans. The reasons that impact the decisions made to choose any particular health care plan. In addition, there are significant differences between HMOs and PPOs and the plans they offer, controlling for organizational and community factors, characteristics of health care plans, and human resources (HR) managers control costs. The article will promote innovations, discuss provider incentives, and facilitate patient satisfaction practices.…