Healthcare experts predict that medical expenses might increase exponentially in the coming years if no steps are taken to reduce the cost. Healthcare providers are implementing interesting plans like capitated IPA, which strengthens the relationship between the patient and the provider.

Under this plan, more emphasis is given on reducing providers’ operational efficiencies and cost reduction. Why should the treatment doctor or the provider choose a accountable care organizations?

Independent Physician Association (IPA) is a group of independent registered medical practitioners. When IPAs sign a contract with insurance companies, the registered medical practitioners must compulsorily treat the patients for a defined period, say one year. The contract period varies according to the terms of the agreement.

A capitation fee is charged for a pre-defined period, and the doctors are expected to treat all the patients falling under the community. Emergency patients, critically ill patients, patients requiring continuous treatment, and aged patients are covered under this agreement. Face-to-face fees are avoided when IPAs sign this agreement.

Primary healthcare, nursing homes, hospitals, and all other healthcare institutions that offer patient-care services will benefit from a capitated IPA plan. Hospitals can achieve the best patient outcomes from capitated IPA plans.