Physicians' Organization of Western Michigan evolved from Grand Rapids Physicians' Corporation (GRPC), a physicians' organization formed in 1986 to be the physician panel in an HMO contract with two local hospitals.

The early organizers of POWM envisioned that the new Physicians Organization would be broader in scope than GRPC but with many of the same providers. Since GRPC was already capitalized and had ten years of managed care experience, it was decided to re-structure. The new entity, re-named Physicians' Organization of Western Michigan, Inc. (POWM) is independent of any hospital or managed care organization, is governed only by physicians and emphasized regional strategic relationships.

In 1996, POWM and ASR, a local third party administrator, launched a PPO product for self-insured employers called Physicians Care. The program has proven to be extremely successful and within two years a fully insured product was added. Physicians Care was one of the most successful PPO start-ups in West Michigan history.

POWM's regional network includes shareholders in greater Grand Rapids, Grand Haven, Hastings, Kalamazoo and Sturgis.