By recei IPAs (Independent Physician Associations) are organizations of multiple physician groups, and its purpose is to ensure that healthcare providers receive timely payments for their services while minimizing the administrative burden on providers. As a unified, larger entity, IPAs can increase their negotiation leverage with insurance companies and other payers, allowing providers to receive higher reimbursements.
How does IPA work?
IPA is contracted with HMOs and other third-party insurances. IPAs are listed in the HMOs directories and are paid a monthly amount, for all the rendered services provided to the patients like capitation. IPAs are then liable to distribute payments to the individual medical professionals and other entities who have rendered medical services to the patients.
Benefits of IPAs
When operating within regulations and participating in federal plans, Independent Physician Associations (IPAs) offer several key advantages:
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Patients can access extended hours, phone triage, urgent care, follow-ups, and prevention programs.
- It helps providers in optimising their revenue cycle with reducing claim denials and in getting timely reimbursements.
- Healthcare providers which are in contract with IPA, submit claims to the IPA then IPA negotiates with insurance company for payment, hence timely reimbursement can be expected.
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The IPA provides assistance with credentialing, claims management, and contract negotiations, so it is optimal solution to reduce operational costs.
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Effective record management reduces errors and discrepancies in the billing process.
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