reimbursement: individual practice association (IPA)
A health maintenance organization delivery model in which the HMO
contracts with a physician organization, which, in turn, contracts with individual
physicians. The IPA physicians practice in their own offices and continue to see
their fee-for-service patients. The HMO reimburses the IPA on a capitated basis; however, the IPA usually reimburses
the physicians on a fee-for-service basis. This type of system combines prepayment with the traditional means of delivering health care,
i.e., physician office/private practice and use of hospitals, nursing homes, and so on.*
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*Extracted from Family Physicians
and Managed Care: A View to the 90's: (paperback 1993) with permission from American Academy of Family Physicians
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