A type of provider service network (PSN) proposed in the House of Representatives Republican Medicare reform proposal (Fall 1995). A PSO could be established and enter into business without the necessity of obtaining state licensure as an insurance (such licensure is required for other types of health care plans). The state could issue a certificate that the PSO meets federal requirements. The PSO would not be subject to any state law imposing capitalization or insolvency requirements that prevent it from doing business.