November 22, 2010
Doctors who own independent practices sometimes
band together to provide a bulk offering of services, at a
collectively negotiated rate, for third-party payers such as large
health insurance carriers. These groups are called “independent
practice associations,” or IPAs, and they’ve been around since the
1950s. IPAs provide tangible value for physicians and patients
alike: Doctors get a middleman to deal with the insurance
bureaucracies, and patients get access to a wide range of health
care providers at discounted prices. But as S.M. Oliva explains in
our December issue, thanks to the ever-expanding mission of
antitrust regulators, the associations are also under constant
attack from the federal government.
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