Download Your Free Copy

Unlease the revenue potential of your practice: Mastering Medical billing.

Special Offer - All Credentialing Services For $200.00 Only | DoctorPapers - Revenue Cycle Managment Company | Read our latest blog: What does HCPCS stand for in Medical Billing?

The word IPA, which stands for Independent Physicians Association, is a key part of the healthcare industry and plays an important role in insurance and billing procedures. In this blog, we’ll examine not just how it works, but also what it signifies for reimbursement procedures. We won’t waste any more time; let’s go right into the blog.

What is the purpose of an IPA?

Independent practice associations are established to provide a separate corporate structure that allows for more efficient revenue cycle management (RCM), lower overhead costs, and stronger contractual ties with employers, ACOs, and MCOs. In addition, their negotiating power with insurance companies is much stronger when they join together in a company.

Multiple studies have shown that patients prefer to get medical treatment from companies that offer a wide range of services and produce positive outcomes via teamwork in the delivery of health care. IPAs can work with a wide range of medical experts and facilities, including diagnostic and imaging facilities, hospitals, and home health agencies, to provide comprehensive healthcare services. These tactics not only assist in collecting cash and managerial resources, but also in reaching a larger pool of potential patients.

How does IPA work?

Members of an IPA have separate contracts with HMOs and other third-party payers, in addition to their agreements with one another. HMOs pay IPAs on a monthly basis for the services they deliver to healthcare purchasers and feature them in their HMO directories. After receiving payment from patients, Independent Physicians Association’s must disperse funds to the medical professionals, hospitals, and other facilities that provided care.

Advantages of IPA:

Here are some main advantages that IPA provides in medical billing procedures:

  1.     IPAs’ legal framework and procedure for dividing up earnings are governed by law.
  2.     Services provided to members as a list.
  3.     Detailed list of optional add-ons that come at an extra payment.
  4.     Membership categories.
  5.     The dues and obligations of members.
  6.     It lets healthcare providers combine resources, share administrative expenses, and negotiate better insurance payment conditions. Practices can save money and make more.
  7.     Healthcare providers may focus on patient treatment by outsourcing billing and administration to the Independent Physicians Association.
  8.     Referrals, teamwork, and professional progress.
  9.     It assists healthcare practitioners with compliance, coding, and problems with insurance.
  10. Healthcare providers may share medical billing knowledge and best practices. 

IPA Vs. Medical Group:

An association of physicians called an Independent Practice Association was created to enter into agreements with third-party payers. Not every physician is interested in selling their business to a hospital or larger practice. Physicians who are not a single, integrated corporate entity might benefit from a broader company thanks to an Independent Physicians Association. They continue to be independent practices with no legal ties to one another.

A medical group is made up of a number of physicians who have contractually partnered with one another. The sharing of patient care is the main goal of this collaboration. With third party payers, they can enter into contracts as a single legal body.

Why Choose an Independent Practice Association?

More independence is available to physicians who belong to independent practice associations than it is to those who work for one particular medical group. They can make decisions that are best for the patient since they are independent. They are free to provide their patients with the finest services possible.

This translates into more customized service that is catered to your needs. Any prescription can be prescribed by medical professionals, and they can recommend any other doctor.  As a result, your PCP is free to administer or suggest any test or procedure that they deem essential for your healthcare.

Selecting a healthcare plan should be your first action. After that, you can focus on picking a primary care physician, a medical group, or an independent practice organization.


The healthcare providers in these groups join together and pool their resources in order to better negotiate with insurance companies. By cooperating, they improve medical quality, lower costs, and reduce administrative tasks for both patients and physicians. Therefore, Independent Physicians Association is extremely important in the realm of medical billing.

Our website uses cookies to improve your experience. By continuing to use our site, you accept the use of cookies and our Website Privacy Policy

Share This