Independent Practice Associations (IPA) are organized associations or collaboratives designed to negotiate service reimbursements for specific services with insurance companies on behalf of the contracted providers compensated with a negotiated capitation or modified fee-for-service model. The benefits of an IPA reduce risk to any one participating provider and allow shared costs across all providers.
With a well-developed service strategy comes greater bargaining power. Whether the IPA encompasses all specialties within a geographic area or represent a single specialty with broad capacity, the services are defined and recognized as value added beyond the expected norm. The “value added” service of the IPA is shared, communicated and tracked with a thoughtful metrics definition that forecasts risks as well as generates performance reports and points to quality improvement reviews. A shared administrative business function should capture, collect and communicate to ease the delivery of care as well as track and ensure referral and landing of services.