How do IPAs function?
An IPA is a group of physicians who form a legal entity to deliver medical care through contractual arrangements with MCOs or purchasers, usually on a capitated basis. Physicians are generally required to contribute dues or in-kind donations as a condition of participation in the IPA, or are offered stock in the IPA and become its shareholders. Hospitals involved in the development of many IPAs and provide initial capital for start- up expenses, donate office space, and make financial loans. Like any corporation, an IPA will create a board of directors and various committees to oversee the operations of the organization.
