ABSTRACT
An Independent Practice Association (IPA) consists of a network of physicians who agree to participate in an association to contract with health maintenance organizations (HMOs) and other managed care plans. Although physicians maintain ownership of their practices and administer their own offices, the IPA serves as a corporate structure for negotiating and administering HMO contracts for its physician members. Managed-care practices have encouraged the development of tightly integrated networks of physicians that in the past were only possible with closed-panel HMOs and other corporate structures to provide care for patients. In many cases, the IPAs in the local neighborhood will grow and partner with other healthcare providers such as hospitals and management services organizations. A new organization, whether Physician Hospital Organization, Management Services Organization, or other set of letters, must be given birth by some parent, and a local IPA is as good a start as any.
