INDEPENDENT PRACTICE ASSOCIATIONS (IPAs) – Class 8

Physicians should understand the implications of contracting with the IPAs such as: what is the volume of patients the physician will actually receive, what is the compensation rate, when are payments made, who is the contact person for the IPA, what are the grievance procedures for the contracting entities; is the contract exclusive or can the physician enter into contracts with various IPAs. Also, Dr. Simon should consider: what is the recourse for the physician if payments are not made in a timely fashion; how does the physician terminate the IPA contract and what are the ramifications. There are a variety of questions to be considered in contracting with an IPA, and these considerations are just a sample.

An Independent Practice Association (IPA) is an entity that combines otherwise autonomous physicians together into a group for contracting purposes. The IPA may contract with various Managed Care Organizations and/or direct contract with employer groups offering the services of the various participating providers in a single contract. The IPA typically receives a management fee for handling the administrative services of the providers.

Physicians should understand the implications of signing up with an IPA such as: what is the volume of patients the physician will actually receive, what is the compensation rate, when are payments made, who is the contact person for the IPA, what are the grievance procedures for the contracting entities; is the contract exclusive or can the physician enter into contracts with various IPAs. Also, consider: what is the recourse for the physician if payments are not made in a timely fashion; how does the physician terminate the IPA contract and what are the ramifications. There are a variety of questions to be considered in contracting with an IPA, and these listed questions are just a sample.

Physicians should understand implications of contracting with Independent Practice Associations (IPAs) such as:

  • What is volume of patients physician will actually receive
  • What is compensation rate
  • When are payments made
  • Who is contact person for the IPA
  • What are grievance procedures for contracting entities
  • Is contract exclusive or can physician enter into contracts with various IPAs
  • What recourse for physician if payments are not made in a timely fashion
  • How does physician terminate IPA contract and what are ramifications
  • There are a variety of questions to be considered in contracting with an IPA, and these considerations are just a sample

Top of page