I always wondered how it was John (not his real name) seemed to be doing quite well working as a sales rep. for a rental PPO network. His wife didn’t work, he lived in an expensive neighborhood in a major Texas city, and was often vacationing at warm sunny beach resorts with plenty of umbrella drinks at hand. Life was good to John.
Years later I learn the source of his income. It wasn’t salary based to any large degree. It was sales based.
“Bill, I was making +$500,000 a year working for XYZ PPO. When I was let go and looking for another job the inevitable question asked by prospective employers was How much do you need to make to work for our company.” When I told them “$500,000 is a good start” they laughed and thanked me for my time.
“John, how the hell did you earn $500,000 a year” I asked in disbelief.
“Bill, every group you put our way I got a % of the PPO discount. That adds up fast! The only limiting provision was there was a cap on earnings when it reached a certain point” John replied.
“Holy Smoke! Do you think that practice continues to this day?” I asked.
Over time I learned more from John about the inner workings of PPO’s and contracts than you can learn from Detective Google. PPO’s best kept secrets were secrets no more.