Final answer:
An independent practice association (IPA) is a type of managed care organization that consists of independent healthcare professionals who come together to provide coordinated healthcare services. They typically operate in a fee-for-service or HMO model and contract with insurance companies or other entities to provide healthcare services.
Step-by-step explanation:
An independent practice association (IPA) is a type of managed care organization that consists of a group of independent healthcare professionals, such as doctors or hospitals, who voluntarily come together to provide coordinated healthcare services to patients. IPAs are typically nonprofit organizations that contract with insurance companies, government agencies, or employers to provide healthcare services. They often operate in a fee-for-service or health maintenance organization (HMO) model, where providers are reimbursed based on the cost of services or the number of patients they handle.
For example, an IPA may contract with an insurance company to provide healthcare services to its members. The insurance company would then pay the IPA a negotiated fee for each service provided to its members. This allows the insurance company to offer a network of healthcare providers to its members and helps the providers attract patients.
In summary, an independent practice association (IPA) is a type of managed care organization that consists of independent healthcare professionals who come together to provide coordinated healthcare services. They typically operate in a fee-for-service or HMO model and contract with insurance companies or other entities to provide healthcare services.